AIM-quoted Vast Resources (LON: VAST) has announced the proposed acquisition of Gulf International Minerals in an all share deal and trading in the shares has been suspended. The share price had already risen 4.35% to 0.12p and it is one-third higher over the past week.
Gulf International Minerals is an explorer focused on Tajikistan. It has a joint venture with the Ministry of Industry and New Technologies in Tajikistan covering four gold mining operations and a central processing plant. Of these, Aprelevka produces 10,4000 ounces of gold and 80,000 ounces of silver each year and Vast has been managing the operation in return for 10% of earnings after tax.
There is no JORC compliant resource estimate. The estimated resource range is 179,00 to 782,000 ounces of gold and 28.7 million to 51.5 million ounces of silver.
A placing will raise £7.5m and this will help to fund a JORC compliant resource estimate. It will also help to pay off loans from A&T Investments SARL and Mercuria Energy Trading SA, which have been extended until 30 January 2026.
Vast Resources believes that Tajikistan has significant untapped resources and it has gained experience in the country.