British company Vast Resources, which manages the Manaila and Baita Plai polymetallic mines in Romania, has sold its assets in Zimbabwe to focus on its local operations.

The firm has secured an external financing of EUR 8 million by selling a stake of almost 50% in the gold mines in Zimbabwe and by contracting a loan. The money will be used to develop the operations in Romania.

The company’s shares have appreciated by over a third in London following the notice. The stake owned by Vast Resources in Zimbabwe’s gold mines was acquired by African investment fund SSCG Africa Holdings (SSA). SSA will also grant a four-year loan worth EUR 4 million to Vast Resources, at a yield of 12% per year.

Vast Resources owns 50.1% in the mining project Manaila, in Suceava county, and 80.1% in the polymetallic mine in Baita. In 2016, the company invested some USD 5.5 million in the two mines and started the production at the Manaila mine reaching a USD 3.3 million turnover.

editor@romania-insider.com