Vast Resources PLC (LON:VAST) is hopeful mining will start by the end of the year at the Baita Plai mine at Romania.
Baita, the holder of the head licence at the site, chose Vast’s subsidiary African Consolidated Resources for the right to mine after a competitive process.
"The proposed investment by a strategic investor of up to US$10mln should enable us to execute our strategic objectives in Romania, and I look forward to providing further updates as appropriate as this process continues," said Roy Pitchford, Vast Resources chief executive.
The investment will come in two-stages, with the first injection of US$8mln coming through a share subscription in the Vast Resources Romania Ltd subsidiary, giving the investor 51% of the unit.
Stage 2, which would see a further US$2mln invested, would essentially involve a switch of equity in the VRR subsidiary for ordinary shares in the Vast Resources PLC – it is expected that the investor would at that point own 29% of the company.