(Sharecast News) - Mining company Vast Resources announced a three-year marketing agreement with a Swiss investment firm on Monday, for the exclusive distribution of high-grade platinum group metal (PGM) concentrates produced within the EU.
The AIM-traded firm said under the agreement, Vast would receive a 2.5% commission based on the sales value of the distributed concentrates.
It expected the deal to create a significant additional revenue stream for Vast Resources, in addition to its ongoing operations at the Baita Plai Mine in Romania and its expanding interests in Tajikistan.
As part of the agreement, Vast said it had received an offer from the Nikash Group, based in Dubai, to purchase PGM concentrate containing an average of 15% platinum, along with other payable materials.
The offer would see Vast arranging the sale and delivery of about two tonnes of high-grade platinum concentrate per month for up to a year.
Independent assays confirmed the platinum concentrate's quality at 15%, but the final sales contract with the Nikash Group was contingent on the buyer's internal assays and product inspection.
Based on the seller's assays, the estimated sales value was expected to exceed $100m.
The transaction marked the initial sale of products on behalf of the Swiss investment company, and Vast said it was actively exploring the marketing of other high-value products from the same source to expand its trading desk.
It said the activities aligned with its interests in Baita Plai, Zimbabwe, Tajikistan, and complemented its existing operations.
"This marks the beginning of an important additional revenue stream for Vast, building on our operations in Romania and our interests in Tajikistan, as we look to strengthen the financial performance of the company throughout 2024," said chief executive officer Andrew Prelea.
"We anticipate that this agreement will result in further collaborative opportunities that will strengthen the operating capabilities of Vast."
At 1321 GMT, shares in Vast Resources were up 12.49% at 0.14p.
Reporting by Josh White for Sharecast.com.
Vast Res (VAST)