Vast Resources sells Zambian mine for $1,1 million to boost Chegutu gold mine project

Vast Resources sells Zambian mine for $1,1 million to boost Chegutu gold mine project

BULAWAYO, February 24 (The Source) – Vast Resources, formerly African Consolidated Resources, has disposed Kalengwa mine and other copper-based assets in Zambia for $1,1 million to boost operations at its flagship Pickstone Peerless Mine in Chegutu which is expected to come on line in the second half of this year.

The London-based miner said it has entered into a sale and purchase agreement to sell its 96 percent  owned subsidiary, African Consolidated Resources Zambia and all of its Zambian copper assets, subject to the completion of satisfactory due diligence by the purchaser, RGS Trading – F.Z.E.  to be completed by March 16 this year.

Under the terms of the agreement, RGS  will pay $1,1 million of which $100,000 is payable 30 days from completion of due diligence and $1 million within 90 days.

“Over recent months our attention has turned toward high value brownfield assets with the ability to generate material cash flow in the near term. With these criteria in mind, the Baita Bihor Polymetallic Mine in Romania and the Pickstone-Peerless Gold Project in Zimbabwe have been prioritised for accelerated development. Subject to the conclusion of satisfactory due diligence and the subsequent acquisition of an interest in Baita Bihor, the Board is targeting commercial production from both Baita Bihor and Pickstone-Peerless by H2 2015,” Vast Resources chief executive officer Roy Pitchford said in a statement.

Vast Resources has been raising money since last year to start production at the mine.

Last year the company announced that it had secured a $1,2 convertible loan from an unnamed company associated with its newly appointed group chairman, William Battershill meant for capital projects at the mine.