Vast Resources Acquires Remaining 49.9% of Sinarom Mining in Romania.
23 March 2017 - UK-based mining company Vast Resources plc (AIM: VAST) has acquired from Ni Jin Ming the remaining 49.9% of Sinarom Mining Group SRL, through which the company owns its interest in the Manaila Polymetallic Mine in Romania, the company said.
This increases Vast's ownership of the producing mine to 100% and follows the settlement of debts associated with the company's acquisition of its original 50.1% interest in Sinarom, as announced on 14 March 2017.
The consideration for the purchase of the shares and outstanding loan account owned by Mr Ni Jin Ming is USD 1.135m with USD 400,000 payable by 31 March 2017 and the balance of USD 735,000 on 30 April 2017.
Vast Resources said the initial payment will be funded from existing cash resources whilst the final instalment payable on 30 April 2017 is expected to be funded by the company raising additional funding at the asset level, which it expects to complete shortly.
Transfer of the shares takes place on making of the final payment. Subject to completion of the transfer of the shares, Mr Ni Jin Ming is released from all other liabilities to the company.
In addition, the outstanding liability to Mr Ni Jin Ming of USD 646,000 in respect of the acquisition of the Baita Plai Polymetallic Mine in Romania - as explained in the announcement of 7 July 2015 - is released.
The net effect on the company's Balance Sheet of this transaction coupled with the arrangements announced on 14 March 2017 will be determined at the next reporting date. In the year to 31 March 2016 Sinarom reported revenue of USD1.812 m and a loss after tax of USD 1.375m.
Vast Resources is a mining and resource development company focussed on the advancement of brownfield projects and recommencing production at previously producing mines in Romania.
The company currently operates the Manaila Polymetallic Mine in Romania, which was commissioned in 2015.
Vast Resources' portfolio also includes the Baita Plai Polymetallic Mine in Romania, where work is currently underway towards obtaining the relevant permissions to start developing and ultimately commissioning the mine.
The company also has interests in a number of projects in Southern Africa including a 25% interest in the producing Pickstone-Peerless Gold Mine in Zimbabwe.
Target: Sinarom Mining Group SRL/ remaining 49.9%
Buyer: Vast Resources
Vendor: Ni Jin Ming
Deal size in USD: 1.125m
Type: Corporate Acquisition
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Mar 23, 2017|
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