Vast Resources plc, the AIM-listed mining company is pleased to announce its participation as one of a collective group of partners in a new joint venture project (the “Project”) in Tajikistan with Open Joint Stock Company Korkhonai Boygardonii Takob (“Takob”).
- Near term revenue opportunity which will provide a further revenue stream alongside concentrate sales from the Company’s Baita Plai Polymetallic Mine in Romania
- The Project is 100% financed
- Vast will receive a 12.25 percent royalty over all sales of non-ferrous concentrate and any other metals produced at Takob’s operating fluoride and galena mine in Tajikistan
- Processing of stockpiled ore on site will commence in Q2 2022
The interest in the Project has been acquired as a result of the acquisition by a recently incorporated UK company, Central Asia Investments Ltd, in which Vast has a 49 percent interest of a 50 percent interest in Central Asia Minerals and Metals Ore Trading FZCO (“CAMM”) which has an agreement with Takob (the “Master Agreement”). Vast has an effective 24.5 percent indirect interest in the Project.
Takob, a wholly owned subsidiary of the Tajikistan Open Joint Stock Company “TALCO”, the country’s largest group of companies that represents a major part of the country’s GDP, is the owner of the operating Takob fluoride and galena mine (the “Mine”) in Tajikistan where the strategic fluoride concentrate is sold to TALCO’s chemical division (“TALCO Chemical LLC”), for the production of essential raw materials required for primary aluminium production.
Under the Master Agreement the Mine is to produce approximately 7,000 tonnes per month of ore containing no less than 1.5-2% lead, 1.2-1.4% zinc and 27% fluoride of which two months production has been stockpiled on site ready for processing to commence in Q2 2022. It is for note that it is reported that historically the Mine contained 30g/t silver and 1-2g/t gold in situ.
Under the Master Agreement CAMM is to provide equipment, technology and technical expertise to upgrade and optimise the processing plant at the Mine, and will undertake the responsibility for the management and execution of the Project.
Takob will continue to mine ore at the Mine and produce fluoride concentrate. Takob has undertaken to supply no less than 1,000,000 tonnes of ore to be processed in line with the Project that is anticipated to run with the current Resource statement for 12 years.
CAMM has also under the Master Agreement been appointed as exclusive agent for Takob to market and sell all non ferrous concentrates and precious metals from Takob’s Mine including but not limited to lead, zinc, gold and silver.
CAMM has secured financing and is fully funded for the Project. In consideration for CAMM’s financing obligations and provision of services under the Master Agreement CAMM will be entitled to receive 50 percent of net revenue from the sale of non ferrous concentrate and precious metals.
In order for CAMM to provide the expertise required to fulfil its services and marketing obligations under the Master Agreement CAMM has entered a services agreement with Vast to provide the services required. Under this agreement Vast is entitled to charge for the services provided on the basis that 24.5 percent of the fees earned therefor will be left outstanding until they can be financed from revenue arising from the Project.
In addition to fees receiveable under the services agreement with CAMM Vast will effectively receive 12.25 percent royalty of all sales of the non-ferrous concentrate and any other metals produced for its participation in the collective group.
Andrew Prelea, Chief Executive Officer of Vast Resources , commented:
“His Excelency Emomali Rahmon, President of the Republic of Tajikistan Rahmon declared that the years 2022 to 2026 would be the years of industrial development for Tajikistan and further declared acceleration of industrialisation to be a national strategic goal. The Tajikistan Government has demonstrated its efficiency and willingness to attract Foreign Direct Investment in industrial projects and in particular in the Mining Sector. I have no doubt that the success of our project will attract further foreign investment in Country.”
“I wish to thank the Minister of Industry and New Technologies of the Republic of Tajikistan, together with the Chairman and Executive Team of Open Joint Stock Company TALCO for their assistance in closing this transaction.”
“I would also to thank all the stakeholders and our strategic partners in Central Asia Minerals and Metals Ore Trading FZCO for giving Vast the opportunity to participate in this exciting venture that opens the door to further opportunities together in Tajikistan.”
For further information, visit www.vastplc.com or please contact:
Vast Resources plc
Andrew Prelea (CEO)
Andrew Hall (CCO)
+44 (0) 20 7846 0974
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