Tajististan Rns....more revenue is coming/ no dilution30 Jun 2022 08:11
30/06/2022 7:00am
UK Regulatory (RNS & others)
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
30 June 2022
Vast Resources plc
('Vast' or the 'Company')
Takob Projects Update
Vast Resources plc, the AIM-listed mining company, is pleased to announce an update regarding its Takob joint venture projects at the Takob Mine in Tajikistan, namely the "Takob Processing Project" and the "Takob Tailings Project" with Open Joint Stock Company Korkhanai Boygardonii Takob ("Takob") and which were announced on 3 and 24 May 2022.
Takob Processing Project
Highlights:
-- Processing of two months worth of stockpiled ore commencing in July 2022
-- Refurbishment of the Takob processing plant nearing completion
-- New equipment on site and in the process of being commissioned
-- Vast will receive a participation equivalent to a 12.25 percent royalty
over all sales of non-ferrous concentrate and any other metals produced
from the Takob Processing Project
-- The royalty equivalent revenue from the Takob Processing Project will
supplement the Company's revenue from concentrate sales from the
Company's 100% owned Baita Plai Polymetallic Mine in Romania
Further information
The new equipment now on site, including Surge Tank, Filter Press and Mixing Tanks, will facilitate the commencement of the first phase of plant production under the Master Agreement between Central Asia Minerals and Metals Ore Trading FZCO and Takob. The equipment planned for the second phase of plant production is focused on improvements in quality and the separation of metals including the non-ferrous concentrates has already been ordered and is expected to arrive on site in Q3 2022.
Takob Tailings Project
The Company continues to make good progress alongside our joint venture partner Formin TJK. The Company will report on the surveying, soil sampling and preliminary drilling work being conducted on the Takob Tailing Project in due course.
Andrew Prelea, Chief Executive Officer of Vast Resources, commented:
"The Takob processing plant is in the final stages of refurbishment, with all major equipment on site ahead of planned commissioning by the end of July. We have two months of stockpiled ore ready to be processed now, and the intention is to blend this with fresh ore over the coming months.
"It is very encouraging to see this ambitious development schedule being met, with the potential for material revenue to be generated for the Company in a matter of weeks.
"With the potential to produce royalty equivalent revenues in the short term, and the prospect of large scale tailings processing in the medium term, all delivered through a financing structure which insulates Vast shareholders from dilution, I am confident that our activities in Tajikistan will prove to be very rewarding for the Company."
For further details on the Takob Processing and the Takob