On Wednesday 21st March 2018 Vast Resources announced it’s Pre-payment Agreement with Mercuria Energy Trading SA (“Mercuria”) based on the Term Sheet announced on 25 January 2018 (the ‘Term Sheet’) has been duly executed and drawdown of Tranche A for US$4 million. The company has witnessed a significant transition in the latest chapter of the story, after shareholders applied direct pressure towards previous management, clearing the way for the newly appointed CEO Andrew Prelea.
Whilst the role has been fraught with the turbulence of navigating choppy waters, Prelea has managed to overcome minor delays and setbacks by achieving a number of key objectives. The team has been working diligently to underpin their operations in Romania signing an offtake for up to 100% of the copper and zinc concentrate produced at the Company’s Manaila Polymetallic Mine (Romania) We believe the latest RNS demonstrates this. In addition, Vast enhanced its focus on the Zimbabwean gold horizon where the company has shown increased production from there milling and crushing operations leading to improved performance. The key focus now is reaching the nameplate of 33,000 tonnes per month.
As the geopolitical landscape shifts, the recent changes to its empowerment law, which under previous leadership nullified international investor confidence. Has seen a significant step forward with reforms signed into law by Mnangagwa saying
“Zimbabwe is open for business” as he seeks to revive an economy that was ruined under Mugabe’s near four-decade rule.
Shares in Vast Resources have soared almost 40% (over 3 months) in the wake of the recent changes, as the transformation of the companies outlook is geared effectively (under new management) to improved efficiency with careful cost-cutting, complimenting a commercially aesthetic funding package. This is a breath of fresh air after years of the threadbare application of Pitchford’s promote and placings.
Assuming the nameplate is reached with an increased commercial consciousness and aperture of new business opportunities in Zimbabwe, one could argue Vast Resources should be added to your watchlist.
Mining activity at the Manaila Polymetallic Mine on Romania, October 2017
Pickstone-Peerless Gold Mine