Vast Resources PLC (AIM:VAST) has joined a consortium with local company Takob in a new but unnamed project in Tajikistan.
The interest in the project was acquired by Central Asia Investments, in which Vast has a 49% interest of a 50% interest in Central Asia Minerals and Metals Ore Trading (CAMM).
CAMM has an agreement with Takob for the mine to produce approximately 7,000 tonnes per month of ore containing no less than 1.5%-2% lead, 1.2%-1.4% zinc and 27% fluoride.
Historically, the mine also contained silver and gold in small quantities.
Vast will receive a 12.25% royalty on all sales of non-ferrous concentrate and any other metals produced at Takob’s operating fluoride and galena mine in Tajikistan.
Takob is a wholly-owned subsidiary of TALCO, the country’s largest group of companies.
Andrew Prelea, Vast Resources’ chief executive, said: “His Excellency Emomali Rahmon, President of the Republic of Tajikistan Rahmon declared that the years 2022 to 2026 would be the years of industrial development for Tajikistan and further declared acceleration of industrialisation to be a national strategic goal.
“The Tajikistan government has demonstrated its efficiency and willingness to attract foreign direct investment in industrial projects and in particular in the mining sector.
“I have no doubt that the success of our project will attract further foreign investment in the country.”
Prelea also reported that Vast’s revenue increased by 236% to US$2.3mln in the first quarter of 2022.
The Baita Plai mine in Romania focused on copper production in Q1 2022, with 224 dry metric tonnes and 263 wet metric tonnes sold.
The second quarter will see a fundamental change in the way the underground mine operates, with a move to mechanised drilling and cleaning.
This is forecast to result in substantially increased production of copper concentrate, commencing in June 2022, which "will be reflected in results from Q3 2022 onwards", said the statement.