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Vast Resources expands footprint in Romania as it takes stake in early-stage polymetallic project

Published: 02:39 15 Aug 2018 EDT

gold nuggets on table
The plan is to eventually list the newly-formed subsidiary

AIM-listed miner Vast Resources PLC (LON:VAST) has acquired a 29.41% interest in the Blueberry project, which is host to highly prospective polymetallic mineralisation and sits in a prolific part of western Romania.

Blueberry, which covers around 7.3 square kilometres, is located in the ‘Golden Quadrilateral’, where the previously producing Baia de Aries mine, the 17.1mln oz (Moz) Rosia Montana mine and 7.2Moz Rovina Valley project can all be found.

READ: Vast close to admin breakthrough at Baita Plai

Historic work across the perimeter area has demonstrated prospectivity for gold and polymetallic mineralisation, with sample values of up to 22.4 grams per tonne of gold obtained from soil sampling.

A new drill programme is currently underway, which is expected to deliver sufficient information to support an inferred JORC mineral resource for gold and other polymetallic minerals including silver, copper, lead and zinc.

Dilution not an issue

Vast will pay for the stake by issuing shares in its newly formed subsidiary EMA Resources to Blueberry Ridge – the holder of the project.

Once issued with the 29.41% interest, EMA will have to secure funding of US$1mln by the end of the month to retain it.

The plan is to develop EMA into a standalone enterprise significant enough to justify an initial public offering before the end of next year.

“As shareholders will be aware, my enthusiasm for and confidence in the reinvigoration of the Romanian mining industry remains a central pillar of Vast’s future growth strategy and I am delighted to present this acquisition to shareholders,” said chief executive Andrew Prelea.

“Due to the structure of this transaction, Vast would benefit from the significant upside potential of developing the Blueberry Project whilst safeguarding investors from significant dilution.

He added: “Work has already started at Blueberry and we look forward to reporting the results of drilling in the coming weeks in order to begin to give the market a tangible sense of the size and quality of this significant mineralised system in addition to our path to developing the project and ultimately crystallising value for Vast shareholders through a proposed IPO.”

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