Shares in Vast Resource PLC (LON:VAST) surged after it took a major step towards being granted mining rights at the Baita Plai mine.
The company, which has operating mines in Romania and Zimbabwe, said an agreement had been obtained from the Minister of Economy in relation to the association licence agreement with Baita SA, the holder of the Baita Plai head licence.
READ: Vast Resources updates on Baita Plai project
Vast described the agreement as a “milestone development” that means the only thing that stands between it and the right to mine is formal approval by Romania's National Agency for Mineral Resources (ANRM). It is anticipated that this will be obtained in early July 2018.
"Following this agreement from the Minister matters now lie with Baita SA and AFCR to make the application for the final seal of approval from ANRM and I am confident that this last item should be dealt with quickly and without issue,” said Andrew Prelea, the chief executive of Vast Resources.
“The importance of Vast receiving the right to mine at Baita Plai cannot be overstated - simply put, this will allow us to begin mining a 1.8Mt orebody with a copper equivalent grade of approximately 6%, which would transform our production profile,” he added.
Shares in Vast Resources were up 10% at 0.56p following the announcement.