Vast Resources PLC (LON:VAST) has announced the acquisition of a 23.75% economic interest in the Eureka Gold Mine in Zimbabwe.
The AIM-listed firm said Zimbabwean company Dallaglio Investments (PVT) Ltd, in which it owns a 25.01% stake, bought a 95% interest in Delta Gold Zimbabwe (Pvt) Ltd from Alpha Resources Ltd and Industrial Development Corporation of South Africa Limited.
The deal provides Vast with an indirect 23.75% interest in Eureka.
The mining company said the US$4.485mln purchase price is financed by a loan from Sub-Sahara Goldia Investments (SSGI) to Dallaglio.
WATCH: Vast Resources eyes near-term production from Eureka gold mine in Zimbabwe
SSGI has an effective 24.99% interest in Dallaglio and therefore funding for the acquisition has been sourced by Vast’s associated entities in Zimbabwe without recourse to Vast.
Andrew Prelea, chief executive of Vast Resources, said in a statement: “The Eureka Mine has had historical investment in excess of US$30mln in the late 1990s.”
He added: “The knowledge we have accumulated from our operations at Pickstone Peerless is invaluable in assessing the true value of dormant mines such as Eureka, that can be brought in to commercial production in the near term.”