VAST Resources has executed a three-year marketing agreement with a Swiss investment company for the exclusive distribution of high-grade platinum group metal (PGM) concentrates produced within the European Union (EU).
Vast has mining interests in Zimbabwe’s Chiadzwa diamond fields and is currently fine-tuning a joint venture deal with communities in the area.It also has an interest in the Eureka Gold Mine in Mashonaland Central province.
According to a market update released yesterday, the marketing agreement will complement Vast’s operations and interests in Romania, Zimbabwe and Tajikistan. “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,” Vast chief executive officer Andrew Prelea said.
“We anticipate that this agreement will result in further collaborative opportunities that will strengthen the operating capabilities of Vast.”According to the agreement, Vast will receive 2,5% commission based on the sales value of the concentrates distributed under this agreement. This agreement complements the company’s existing metal trading activities and is expected to provide a significant additional revenue stream for Vast alongside its operations at the Baita Plai Mine in Romania, and its recently expanded interests in Tajikistan.
“As part of this arrangement, and on behalf of the Swiss investment company, Vast has received an offer from the Nikash Group to purchase PGM concentrate containing on average 15% platinum plus other payable materials and which is being marketed as a platinum concentrate,” the update read in part.
Under the offer, Vast will arrange the sale and delivery of, on average, two tonnes of high-grade platinum concentrate per month over a period of up to one year.Independent assays have been performed by the seller corroborating the grade of the platinum concentrate at 15% and execution of the final sales contract with the Nikash Group will be dependent, among other matters, on the buyer concluding its internal assays and inspection of the product.
The estimated sales value, based on seller assays, is expected to exceed US$100 million.“This transaction will represent the first sale of a product on behalf of the Swiss investment company,” it said.“The company is also currently working on the marketing of other similar high value products originated from the same Swiss investment company to expand Vast’s trading desk.
“These activities naturally complement Vast’s operations and interests in Baita Plai, Zimbabwe and Tajikistan.“The company’s expectations regarding these business areas remain positive and the management team remains fully committed to their successful development.”
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Headquartered in Dubai, the Nikash Group has become a leader in the manufacturing, trading and distribution of specialised commodities.Founded in 1960 as a general trading company specialising in the agricultural sector, the group has since grown to become a major player and marketer of physical commodities with a presence in over 50 countries worldwide through agents and representative offices.
Nikash Metals specialises in metals such as nickel, cobalt, titanium, molybdenum, niobium, tantalum, tungsten, zirconium, hafnium, rhenium and precious metals used in the following industries: oil and gas, aerospace, automobile, medical, orthopaedics, electric vehicles, thermal spray, electroplating, steel and 3D additive manufacturing.
