Vast Resources signs lucrative 3-year PGM agreement with Swiss investment company
() , an AIM-listed mining company with projects in Europe, Tajikistan, and Zimbabwe, announced a 3-year marketing agreement with a Swiss investment company for the exclusive distribution of high-grade platinum group metals (PGM) concentrates produced in the EU.
Under the agreement, Vast will receive a 2.5% commission based on the sales value of the concentrates distributed. Markets welcomed the additional revenue stream for the company, sending shares 8.2% higher on Monday.
As part of the arrangement, and on behalf of the Swiss investment company, Vast has received an offer from Nikash Group to purchase PGM concentrate containing on average 15% platinum plus other payable materials, being marketed as a platinum concentrate. Under the offer, Vast will arrange the sale and delivery of 2 tonnes of high-grade platinum concentrate per month on average, over a period of up to 1 year.
"This marks the beginning of an important additional revenue stream for Vast, building on our operations in Romania and our interests in Tajikistan, as we look to strengthen the financial performance of the Company throughout 2024. We anticipate that this agreement will result in further collaborative opportunities that will strengthen the operating capabilities of Vast." commented Andrew Prelea, CEO of Vast Resources.
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Vast Resources has signed a major 3-year contract with a Swiss investment company for the exclusive distribution rights of PGM concentrates produced in the EU, under which will earn a 2.5% commission. The agreement will see a significant additional revenue stream for Vast alongside existing operations at its flagship Baita Plai polymetallic mine in Romania and its recently expanded interests in Tajikistan. Markets reacted positively, sending shares 8.2% higher in early trade, building on a broader rally since the beginning of the year that has propelled 53% higher.
Additionally, the offer from Nikash for 15% platinum concentrate to be sold and delivered by , will materially expand Vast's trading desk, with further marketing opportunities expected. The final sales value of the Nikash contract is estimated at over US$100m. The transaction will represent the first sale of product on behalf of the Swiss investment company, with further offers being developed by the two partners.
Vast remains well-funded after raising £1.8m through a placing in October, following a £1.7m fundraise in July, providing sufficient working capital to develop and expand its portfolio. The company is also waiting on the recovery of a historic parcel of 129,400 rough diamonds held in custody at the Reserve Bank of Zimbabwe, following a High Court Order in Vast's favour.
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