NAV$200m vs £2m mc21 May 2024 07:29
Now that the logistics are in place the Company envisages that there will be regular shipments in the future.
Mou
Aprelevka holds four active mining licences located along the Tien Shan Belt that extends through Central Asia, currently producing approximately 11,600oz of gold and 116,000 oz of silver per year. It is the intention of the Company to assist in increasing Aprelevka's production from these four mines closer to the historical peak production rates of approximately 27,000oz of gold and 250,000oz of silver per year from the operational mines.
Two additional mines have been explored, and eight further licenced mining areas that are currently being prospected have shown positive results.
Vast will be entitled to a 10% share of the earnings before interest, tax and depreciation that Gulf receives from its 49% interest in Aprelevka. Vast will also have the right at any time from 1 January 2025 until the end of the 5-year management period (i) to convert its earnings share entitlement into a 10% equity interest in Gulf and (ii) to acquire up to 20% of the share capital of Gulf at market value at the time of acquisition, market value to be determined by the auditors in default of an agreement between the parties.
Our success in country and our collaborative approach to operating the Takob processing facility was key in securing the MOU with CAMR and demonstrates the Board's ability to increase our earnings and enhance shareholder value, whilst establishing ourselves further in Tajikistan."
The Aprelevka opportunity should provide Vast with a further meaningful source of revenue in the near-term, whilst insulating shareholders from dilution. As managers of the Aprelevka Gold Mines, Vast will have direct exposure to the top line growth of the assets as we work to increase production at the operational mines back to historical highs of 27,000oz Au and 250,000oz Ag per annum, and also exposure to the significant upside expected from the development of the three tailings dams and eight further exploration assets.
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