Vast Resources plc Acquisition Of A 29.41% Interest In The Blueberry Project In The 'golden Quadrilateral' Of Romania

 
TIDMVAST 
 
   15 August 2018 
 
   Vast Resources plc 
 
   ("Vast" or the "Company") 
 
   Acquisition of a 29.41% interest in the Blueberry Project 
 
   in the 'Golden Quadrilateral' of Romania 
 
   Vast Resources plc, the AIM listed mining company with operations in 
Romania and Zimbabwe, is pleased to announce the acquisition of an 
indirect 29.41% interest in the Blueberry Project, which hosts highly 
prospective polymetallic mineralisation and is located in the 'Golden 
Quadrilateral' of Western Romania ("the Blueberry Project").  The 
"Golden Quadrilateral" hosts the prolific Baia de Aries gold mine, the 
17.1Moz Rosia Montana Mine and 7.2Moz Rovina Valley Project. 
 
   Overview 
 
 
   -- Acquisition of an interest of 29.41% in a brown field perimeter covering 
      a total of 7.285km(2) in the 'Golden Quadrilateral' of Western Romania: 
 
          -- The Blueberry Project is adjacent to the previously producing Baia 
             de Aries Mine, which operated until 2004 and is reported to have 
             produced 20% of the historical gold production from the Golden 
             Quadrilateral 
 
          -- Historic work across the perimeter area has demonstrated 
             prospectivity for gold and polymetallic mineralisation -- sample 
             values of up to 22.4g/t of gold were obtained from historic soil 
             sampling 
 
          -- Drilling programme and assaying underway, which is anticipated to 
             deliver sufficient information to support an Inferred JORC Mineral 
             Resource for gold and other polymetallic minerals including silver, 
             copper, lead and zinc in one or more of several distinct breccia 
             pipes 
 
          -- Following expiry of the Exploration Licence over Blueberry Project 
             the holder has the right under the Romanian mining law subject to 
             satisfaction of certain conditions detailed below, to migrate this 
             to an Exploitation Licence by 31 December 2018 
 
   -- Transaction structured to be non-dilutive to Vast shareholders -- initial 
      acquisition to be satisfied in new shares in Vast's newly formed 
      subsidiary EMA Resources Ltd ('EMA') which will be financed at a project 
      level 
 
   -- EMA to be issued with an initial interest of 29.41% (as further set out 
      below) and the retention of this interest is conditional on EMA procuring 
      funding of $1 million by 31 August 2018 or such later date as the Vendors 
      may agree -- the acquisition does not require any regulatory approval in 
      Romania 
 
   -- Intention for EMA to develop into a standalone enterprise significant 
      enough to justify an Initial Public Offering ('IPO') targeted by the end 
      of 2019 
 
   -- Pre-IPO costs expected to be funded by third party finance and no 
      material cost commitment for Vast 
 
   -- Vast to have management and control of the future mining operations, and 
      also over the exploration programme and the IPO process in consideration 
      of a fee equal to 10% of pre-IPO costs 
 
 
   Andrew Prelea, Chief Executive of Vast, commented: 
 
   "As shareholders will be aware, my enthusiasm for and confidence in the 
reinvigoration of the Romanian mining industry remains a central pillar 
of Vast's future growth strategy and I am delighted to present this 
acquisition to shareholders.  Due to the structure of this transaction, 
Vast would benefit from the significant upside potential of developing 
the Blueberry Project whilst safeguarding investors from significant 
dilution. 
 
   "Work has already started at Blueberry and we look forward to reporting 
the results of drilling in the coming weeks in order to begin to give 
the market a tangible sense of the size and quality of this significant 
mineralised system in addition to our path to developing the project and 
ultimately crystallising value for Vast shareholders through a proposed 
IPO." 
 
   Acquisition of Interest in the 'Golden Quadrilateral' of Romania 
 
 
 
   Vast announces that its newly formed subsidiary EMA Resources Ltd 
('EMA') has contracted to acquire the entire share capital of the 
Romanian company Blueberry Ridge SRL ('BRL') in consideration of an 
undertaking by EMA to issue to the vendors (the 'Vendors') new shares 
which will constitute 70.59% of the enlarged ordinary share capital of 
EMA.  The result, subject to a condition explained below, is that Vast 
will retain 29.41% of such enlarged capital subject to a possible 
reduction to 26.41% on account of the entitlement by Andrew Prelea, 
Chief Executive Officer of the Company, to 10% of Vast's share and as 
explained more fully below. 
 
   BRL is the holder of the Blueberry Project, an exploration licence over 
a brown field perimeter of prospectivity with high gold in an area known 
as the 'Golden Quadrilateral' in the Metaliferi Mountains of Romania. 
This licence, based on the exploration programme already completed, 
gives BRL the right to convert the exploration licence into an 
exploitation licence provided it complies with the requirements 
concerning this process as set out tin the Romanian mining law.  A 
summary of these requirements is set out in the penultimate paragraph 
under 'further information' below. 
 
   Vast is of the opinion, based on the known geology of the Blueberry 
Perimeter, the extensive historical mining activities and together with 
the expected results of the exploration drilling now undertaken, that 
the potential of EMA together with its subsidiary BRL will be such that 
EMA may justify an IPO as a standalone enterprise. 
 
   Vast has agreed with the Vendors to use reasonable endeavours both to 
manage the process by which EMA achieves an IPO by 31 December 2019 and 
to procure finance for EMA of up to $2 million which is the amount 
estimated to be needed for pre-IPO costs, including repayment of a 
proportion of the exploration drilling costs already incurred.  Of this, 
$1 million is to be raised by 31 August 2018 or such later date as the 
Vendors may agree, satisfaction of which is a condition of Vast's 
retention of 29.41% of the enlarged share capital of EMA.  Any shares 
that fall to be issued to pre-IPO financiers will dilute the interests 
of the Vendors and of Vast rateably. 
 
   Under the agreement between Vast and the Vendors, a shareholders 
agreement is to be drawn up under which one of the Vendors will have a 
seat on the Board; there will be usual provisions concerning 
circumstances where a unanimous decision of shareholders is required; 
but Vast will have management control of the IPO process and of the 
direction of the ongoing resource evaluation process and Vast will be 
entitled to a fee equal to 10% of EMA's pre-IPO costs. 
 
   It is the intention that Vast will have management and control of future 
mining operations which will be carried out through a gravity process 
for the free gold and otherwise by a floatation process which will 
separate out all the polymetallic minerals.  It is not intended that 
cyanide will be employed for the gold extraction. Metallurgical test 
work to determine the optimal extraction method will be undertaken. 
 
   Further information on Blueberry 
 
 
   -- The Blueberry perimeter of 7.285km(2) is a brownfield area of 
      prospectivity in the Golden Quadrilateral located in the immediate 
      vicinity of the now closed Baia de Aries mine.  The Golden Quadrilateral 
      has significant areas of polymetallic prospectivity (copper, zinc and 
      lead coupled with particularly high gold and silver) and has been 
      estimated to have produced approximately 55 million ounces of gold in the 
      past.  Also in the Golden Quadrilateral are Rosia Montana with a reported 
      NI 43-101 Resource of 17.1 million ounces of gold and 81 million ounces 
      of silver (SRK Consulting - October 2012) and Euro Sun Mining's, Rovina 
      Valley project with a reported 7.2 million ounces of gold and 1.4 billion 
      pounds of copper (AGP Mining Consultants -- NI 43-101 -- July 2012). 
 
   -- Mineralisation styles within the Blueberry perimeter 
 
          -- Mineralisation is developed in the form of breccia 'pipes', 
             polymetallic quartz -- carbonate veins and metasomatic replacement 
             deposits on the lithological boundaries between andesite, 
             limestones and schists. 
 
          -- Within the perimeter, a number of breccia pipe localities are 
             indicated on surface geological plans. These localities have been 
             the subject of the recent drilling programme.   The breccia pipes 
             occur as Phreatomagmatic collapse and / or eruptive breccias and 
             range in size from 20m -- 150m in diameter, with known depths of 
             up to 1 000m. The breccia occurrences take a quasi-circular form 
             with a central dip direction suggesting the presence of a deeper 
             intrusive structure. 
 
          -- Polymetallic sulphide bearing veins are developed adjacent to the 
             breccia pipes in areas of intense fracturing. The veins are 
             typically 100m -- 400m in length, 50m -150m vertical extent and 
             approximately 1m wide. Zinc and lead are the main minerals with 
             copper being subordinate. References to 44 veins are made to and 
             documented in historical literature and maps. 
 
          -- Metasomatic replacement deposits form either in the limestone 
             lithologies or on the boundaries between the limestones, andesites 
             and schists. 
 
          -- Gold mineralisation is more prevalent in the breccia pipes and 
             occurs as free gold or inclusions within sulphides. The area is a 
             type locality for sylvanite, a gold -- silver telluride, which has 
             been observed in core from the recent drilling program. Further 
             mineralisation takes the form of auriferous pyrite whereby 
             fine-grained gold is included in the crystal lattice of the pyrite 
             structure. 
 

          -- The gold (dominant) and polymetallic (subordinate) mineralisation 
             is spatially associated to the andesite intrusive structures with 
             hornblende +/- pyroxene (Afini structure), while the polymetallic 
             (dominant) and gold (subordinate) mineralisation is spatially 
             associated to the quartz andesite intrusive structure with 
             hornblende +/- biotite (Ambru i M lai structure). 
 
          -- Polymetallic mineralisation is more prevalent in the vein systems 
             and the metasomatic replacement bodies with a lower tenor of gold. 
             Zinc and lead are the main economic with copper being subordinate 
             but locally elevated in places. 
 
   -- A detailed assessment of the geology and of historical sample results on 
      the Blueberry perimeter was given in a doctoral thesis by Professor Calin 
      T ma from Babe -- Bolyai University (Cluj): Structures of Endogenic Brief 
      (Brief Pipe -- Breccia Dyke) and Petrolmetalogenia Rosia Montana 
      (M.Metaliferi) 2007.  It records extensive rock samples taken at an 
      average grade of 1.47 g/t Au with a range of 1.2 to 2.9 g/t. 
 
   -- The Blueberry Perimeter encircles the old Baia de Aries Mine which is 
      reported to have produced from six breccia pipes contained therein 20% of 
      the historical gold production from the Golden Quadrilateral which is 
      reported to total 55 million ounces of gold.  This mine was closed and 
      rehabilitated with finance from an EU project following Romania's 
      accession to the EU, as a result of which the area is currently excluded 
      from exploration or mining operations.  Under the proposed new Romanian 
      mining law expected to come into force in 2018 this exclusion will end 
      with the consequence that BRL will be well placed to apply for an 
      exploration licence over this area.  Obtaining of this licence will carry 
      the additional benefit of access to all the historical records of the old 
      Baia de Aries Mine. 
 
   -- Previous work on the Blueberry Perimeter from records directly available 
      to Vast includes 159 soil samples, 98 rock samples and 25 drill holes. 
      The partially recorded information history derived therefrom is positive 
      and encouraging and shows that the area as a whole is open to 
      mineralisation. 
 
   -- An anomaly has been verified by Vast from nine additional soil samples, 
      and a simple contour of gold sample values obtained has indicated 
      elevated gold in the samples centred around a breccia pipe indicated on 
      the local geological maps of the area.  Sample values of up to 22.4g/t of 
      gold were obtained in the historical soil sampling programmes. 
 
   -- Vast has been involved in the planning of a further exploration programme 
      (the 'Planned Exploration Programme') involving 6,800 metres of targeted 
      drilling, assaying and associated works.  In the opinion of Vast the 
      Planned Exploration Programme is likely to provide sufficient information 
      to estimate at least an Inferred JORC Mineral Resource for gold and other 
      minerals in one or more distinct breccia pipes. 
 
   -- The greater part of the Planned Exploration Programme has now been 
      completed although the assays from the drill cores are awaited.  This has 
      been financed to date by the Vendors.  The Vendors have agreed to bear 
      the cost of the first 1,200 metres of drilling.  The balance of the costs 
      of drilling, assaying and other works incurred by the Vendors will be 
      refunded out of the $2 million pre-IPO finance to be raised. 
 
   -- Under the Romanian mining law, BRL has the right to be granted an 
      exploitation licence giving it the right to mine on the giving of a 
      satisfactory final exploration report by 3 October 2018.  The subsequent 
      application for the exploitation licence must be submitted by 31 December 
      2018 and accompanied by a feasibility study, development plan, 
      environmental impact and rehabilitation study and a social impact 
      assessment.  Arrangements for this process are in hand but are subject to 
      the assay results from the Planned Exploration Programme being as 
      expected. 
 
   -- Andrew Prelea has been engaged with investigation and negotiations on 
      Blueberry since before he joined the Company.  Blueberry is a 'Joint 
      Asset' of which Andrew Prelea is entitled to a 10% interest as referred 
      to in the Company's announcement of 1 March 2018 following his 
      appointment to the Company as a Director.  As therein stated, in order to 
      eliminate conflicts of interest, it was and remains the intention of both 
      the Company and of Andrew Prelea to negotiate terms under which Andrew 
      Prelea's interests in the Joint Assets are exchanged for special option 
      rights to acquire shares in the Company subject to approval by 
      shareholders of the Company at a General Meeting.  On account of this 
      intention no shares in EMA are being issued to Andrew Prelea at present 
      pending further discussion on the special option rights. 
 
 
   Qualified Person 
 
   The information in this report that relates to Exploration Targets, 
Exploration Results, Mineral Resources or Ore Reserves is based on 
information compiled by Mr Craig Harvey, the Chief Operating Officer for 
Vast and a full-time employee and Director of the Company.  Mr Harvey is 
a Competent Person who is a Member of the Australian Institute of 
Geoscientists and of the Geological Society of South Africa, a 
Recognised Professional Organisation included in a list that is posted 
on the ASX website from time to time. 
 
   Mr Harvey has sufficient experience that is relevant to the style of 
mineralisation and type of deposit under consideration and to the 
activity being undertaken to qualify as a Competent Person as defined in 
the 2012 Edition of the 'Australasian Code for Reporting of Exploration 
Results, Mineral Resources and Ore Reserves'. Mr Harvey consents to the 
inclusion in the report of the matters based on his information in the 
form and context in which it appears. 
 
   **ENDS** 
 
   For further information, visit www.vastresourcesplc.com or please 
contact: 
 
 
 
 
Vast Resources plc                        www.vastresourcesplc.com 
 Andrew Prelea (Chief Executive Officer)   [phone] 
Beaumont Cornish - Financial & Nominated  www.beaumontcornish.com 
 Adviser                                   [phone] 
 Roland Cornish 
 James Biddle 
Brandon Hill Capital Ltd -- Joint Broker  www.brandonhillcapital.com 
 Jonathan Evans                            [phone] 
SVS Securities Plc -- Joint Broker        www.svssecurities.com 
 Tom Curran                                [phone] 
 Ben Tadd 
 
  St Brides Partners Ltd                    www.stbridespartners.co.uk 
  Susie Geliher                             [phone] 
  Charlotte Page 
 
 
   The information contained within this announcement is deemed by the 
Company to constitute inside information as stipulated under the Market 
Abuse Regulations (EU) No. 596/2014 ("MAR"). 
 
 
 
 

(END) Dow Jones Newswires

August 15, 2018 02:00 ET (06:00 GMT)

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