Vast Resources plc, the AIM-listed mining company, is pleased to announce that following the successful opening of the Takob Mine Processing Project at the Takob Mine in Tajikistan (“the Project”) with Open Joint Stock Company Korkhanai Boygardonii Takob (“Takob”) it has signed an exclusive offtake contract with Trafigura PTE. Ltd.
One of the world’s leading independent commodity trading and logistics companies for the sale of bulk concentrates produced via the Project.
As previously announced, the Company’s interest in the Project is via 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”).
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.
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.
The Company and Trafigura have agreed terms and conditions for Trafigura to purchase Bulk Concentrate with Lead, Zinc, Gold and Silver as the payables under a market standard priced contract.
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.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including a majority share of global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. Trafigura is owned by its employees and employs over 13,000 people working in 48 countries. Visit: www.trafigura.com
Andrew Prelea, Chief Executive Officer at Vast Resources PLC, commented:
“We are delighted to announce our new relationship with Trafigura which really highlights the potential of the Takob Mine Processing Project in Tajikistan. We look forward to building on this relationship as we look to progress other projects such as the Takob Tailings Project in Tajikistan and beyond.”
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.
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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