Baita Plai Update
Vast Resources plc, the AIM-listed mining company, wishes to announce that following a dispute with the Unions and certain members of the Baita Plai workforce in Romania, the Company has decided to enter Vast Baita Plai SA (BPSA), the operator of the Baita Plai mine, into a period of voluntary reorganisation to be affected by a Court judged process under the Insolvency Act in Romania (and not requiring BPSA to enter Bankruptcy as has been reported).
The news of the reorganisation was published on 4 June 2024 prior to the reorganisation request being approved by the Court in the local Romanian press at the instigation of a group of BPSA employees who were earmarked for dismissal. The reorganisation gives BPSA the opportunity to dismiss, without significant cost, those employees who have been abusing the system, particularly in respect of taking of medical leave, but also the possibility to re-employ those employees whom BPSA wishes to retain on new contracts materially more advantageous to BPSA. Certain employees were demanding a reduction in working hours of about 25% and an increase in paid holidays to almost twice that required under National regulations. The reorganisation affects in no way the ownership or running of the mine, should achieve new efficiencies in working practices, substantial cost savings, and is in the interests of the Company and its shareholders as a whole.
**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 |
