GCIVast Resources advances in Tajikistan with first lead-zinc shipment and MoU for Aprelevka gold mines
() , an AIM-listed mining company with projects in Europe, Tajikistan, and Zimbabwe, updated markets on its activates in Tajikistan.
At the Takob processing project, Vast announced the loading of the first shipment of 136 dry metric tonnes of lead and zinc concentrate for delivery to off-taker Trafigura. This is a significant milestone for the project as Vast has now completed all necessary logistics for shipments of concentrate out of Tajikistan. With the logistics in place, Vast said it expects regular shipments in the future.
Vast also announced a Memorandum of Understanding (MoU) signed on behalf of Bay Square Pacific, owned by its strategic partner in Tajkistian, with Central Asian Minerals and Resources (CAMR) under which Bay Square will acquire the entire share capital of Gulf International Minerals. The completion of the purchase will not be dependent on any government approval in Tajikistan and Gulf will have no liabilities at completion.
Gulf has a 49% interest in a joint venture with the government of Tajikistan (owning 51%) in the Tajik-Canadian company Aprelevka. Aprelevka holds 4 active mining licences along the Tien Shan Belt that extends through Central Asia, currently producing c. 11,600oz of gold and 116,000 oz of silver per year. Vast wants to help increase Aprelevka's production from these 4 mines closer to their historical peak rates of 27,000oz of gold and 250,000oz of silver per year.
Vast has been requested by Bay Square to carry out, at the cost of the former, due diligence on Gulf and Aprelevka, and post-completion to manage the mining and development activities of Aprelevka for a 5-year period. Vast will then be entitled to a 10% share of the earnings that Gulf receives from its 49% interest in Aprelevka.
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Overall, Vast continues to advance its projects in Tajikistan, having now completed all steps necessary for its first shipment to partner Trafigura, and for regular future shipments out of Tajikistan. The MoU with CAMR to develop Aprelevka's assets in the region is another positive development that will yield an additional revenue stream for Vast. Securing the lucrative deal with CAMR is testament to Vast's successful strategy in the country.
Production is also increasing at Vast's flagship Baita Plai polymetallic mine in Romania where Vast recently achieved operational breakeven. The company remains well-funded after raising £1.8m through a placing earlier in October, following a £1.7m fundraise in July, providing sufficient working capital to develop and expand its portfolio. Vast is also waiting on the recovery of a historic parcel of 129,400 rough diamonds held in custody at the Reserve Bank of Zimbabwe, following a High Court Order in Vast's favour.
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