(Sharecast News) - Vast Resources announced on Thursday that, following the successful opening of the Takob mine processing project at the Takob Mine in Tajikistan, it has signed an exclusive offtake contract with global commodity trader Trafigura for the sale of bulk concentrates produced from the project.
The AIM-traded firm's interest in the project is via Central Asia Investments, in which Vast has a 49% interest of a 50% interest in Central Asia Minerals and Metals Ore Trading (CAMM), which has a master agreement with Takob.
Under the master agreement, the mine would produce 7,000 tonnes per month of ore containing no less than 1.5% to 2% lead, 1.2% to 1.4% zinc, and 27% fluoride.
Takob would continue to mine ore at the mine, and produce fluoride concentrate.
Vast said Takob had undertaken to supply at least one million tonnes of ore to be processed in line with the project, which was expected to run with the current resource statement for 12 years.
CAMM, under the master agreement, had also been appointed as exclusive agent for Takob to market and sell all non-ferrous concentrates and precious metals from Takob's mine, including lead, zinc, gold and silver.
The company and Trafigura agreed terms and conditions for Trafigura to purchase bulk concentrate with lead, zinc, gold and silver as the payables under a market standard priced contract.
Vast said it would receive a participation equivalent to a 12.25% royalty over all sales of non-ferrous concentrate and any other metals produced from the Takob processing project.
"We are delighted to announce our new relationship with Trafigura which really highlights the potential of the Takob Mine processing project in Tajikistan," said chief executive officer Andrew Prelea.
"We look forward to building on this relationship as we look to progress other projects such as the Takob tailings project in Tajikistan and beyond."
At 1217 BST, shares in Vast Resources were up 3.66% at 0.43p.
Reporting by Josh White at Sharecast.com.
Vast Res (VAST)