New Copper Offtake Secured with Trafigura for Baita Plai
March 13 2024 - 3:00AM
UK Regulatory
New Copper Offtake Secured with Trafigura for Baita Plai
Vast Resources plc / Ticker: VAST / Index: AIM /
Sector: Mining
13 March 2024
Vast Resources plc
(‘Vast’ or the ‘Company’)
New Copper Offtake Secured with Trafigura
for Baita Plai
Vast Resources plc, the AIM-listed mining
company, is pleased to announce that it has secured a new exclusive
offtake agreement with Trafigura Group Pte (‘Trafigura’) for all
copper concentrate (‘the New Offtake’) produced at the Company’s
100% owned Baita Plai Polymetallic Mine in Romania (‘Baita Plai’).
The New Offtake builds on Vast’s existing relationship with
Trafigura, which is one of the world’s leading independent
commodity trading and logistics companies, following the exclusive
offtake agreement signed with Trafigura in October 2022 relating to
the Takob Mine in Tajikistan.
The New Offtake agreement, which will be in
place until June 2025, will replace the existing copper concentrate
offtake agreement. The New Offtake agreement pricing terms are in
accordance with market practice, with adjustments for the grade of
material delivered, and at a small discount to the LME cash
settlement quotation averaged over an agreed period for copper,
silver and gold to ensure competitive pricing.
Copper concentrate production is ramping up at
Baita Plai with dry metric tonnes increasing by 24% from Q4 2022 to
Q4 2023. In addition, as previously reported, the Company is
currently working to accelerate development of the underground
decline access ramp at Baita Plai, which is expected to
substantially increase productivity through reduced underground
haulage times and also provide faster access to high grade ore at
depth. As a result, the Company expects the overall grade of
concentrate produced at Baita Plai to increase, and for there to be
a reduction in grade variability which will align with the
Company’s offtake objectives with Trafigura.
The Board would also like to advise shareholders
that discussions regarding the terms and conditions of the
extension of the loans to A&T Investments SARL and Mercuria
Energy Trading SA beyond the current effective repayment date of 29
February 2024 are continuing, and the Company will update the
market once finalised.
Andrew Prelea, Chief Executive Officer
at Vast Resources PLC, commented:
“Vast has been developing a relationship
with Trafigura, one of the world’s leading independent commodity
trading and logistics companies, since early 2022 and we are
delighted to report this new exclusive offtake over our producing
asset in Romania. The terms of the offtake ensure that Vast will
benefit from the widely forecast price increase over the coming
months and into 2025 as global supply struggles to meet demand,
with UBS going as far as to say that ‘a copper supply crunch is
unavoidable’. As a Company in production, which continues to ramp
up with limited additional capex required, Vast is in a solid
position to capitalise on these market dynamics through its new
offtake with Trafigura.”
About
Trafigura
Trafigura is a leading commodities group, owned by its employees
and founded 30 years ago. At the heart of global supply, Trafigura
connects vital resources to power and build the world. It deploys
infrastructure, market expertise and a worldwide logistics network
to move oil and petroleum products, metals and minerals, gas and
power from where they are produced to where they are needed,
forming strong relationships that make supply chains more
efficient, secure and sustainable. Trafigura invests in renewable
energy projects and technologies to facilitate the transition to a
low-carbon economy, including through H2Energy Europe and joint
venture Nala Renewables.
The Trafigura Group also comprises industrial
assets and operating businesses including multi-metals producer
Nyrstar, fuel storage and distribution company Puma Energy, and the
Impala Terminals joint venture. The Group employs over 12,000
people and is active in 156 countries.
Visit: www.trafigura.com
Market Abuse Regulation (MAR)
Disclosure
Certain 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 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 (“UK MAR”) until the release
of this announcement.
**ENDS**
For further information, visit
www.vastplc.com or please contact:
Vast
Resources plc
Andrew Prelea (CEO)
|
www.vastplc.com
+44 (0) 20 7846 0974 |
Beaumont
Cornish – Financial & Nominated Advisor
Roland Cornish
James Biddle
|
www.beaumontcornish.com
+44 (0) 20 7628 3396 |
Shore
Capital Stockbrokers Limited – Joint Broker
Toby Gibbs / James Thomas (Corporate Advisory)
|
www.shorecapmarkets.co.uk
+44 (0) 20 7408 4050 |
Axis
Capital Markets Limited – Joint Broker
Richard Hutchinson
|
www.axcap247.com
+44 (0) 20 3206 0320 |
St Brides
Partners Limited
Susie Geliher |
www.stbridespartners.co.uk
+44 (0) 20 7236 1177 |
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM
listed mining company with mines and projects in Romania,
Tajikistan, and Zimbabwe.
In Romania, the Company is focused on the rapid
advancement of high-quality projects by recommencing production at
previously producing mines.
The Company's Romanian portfolio includes 100%
interest in Vast Baita Plai SA which owns 100% of the producing
Baita Plai Polymetallic Mine, located in the Apuseni Mountains,
Transylvania, an area which hosts Romania's largest polymetallic
mines. The mine has a JORC compliant Reserve & Resource Report
which underpins the initial mine production life of approximately
3-4 years with an in-situ total mineral resource of 15,695 tonnes
copper equivalent with a further 1.8M-3M tonnes exploration target.
The Company is now working on confirming an enlarged exploration
target of up to 5.8M tonnes.
The Company also owns the Manaila Polymetallic
Mine in Romania, which the Company is looking to bring back into
production following a period of care and maintenance. The Company
has also been granted the Manaila Carlibaba Extended Exploitation
Licence that will allow the Company to re-examine the exploitation
of the mineral resources within the larger Manaila Carlibaba
licence area.
Vast has an interest in a joint venture company
which provides exposure to a near term revenue opportunity from the
Takob Mine processing facility in Tajikistan. The Takob Mine
opportunity, which is 100% financed, will provide Vast with a 12.25
percent royalty over all sales of non-ferrous concentrate and any
other metals produced. Vast has also been contractually appointed
to manage and develop the Aprelevka Gold Mines located along the
Tien Shan Belt that extends through Central Asia, currently
producing approximately 11,600 oz of gold and 116,000 oz of silver
per annum. It is the intention to increase production closer to
historical peak production of 27,000 oz gold and 250,000 oz silver.
Vast will be entitled to a 4.9% effective interest in the mines
with the option to acquire equity in the future.
The Company retains a continued presence in
Zimbabwe in respect of the Historic claims.
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