UK-based exploration firm Vast Resources has acquired a 23.75% economic interest in the Eureka gold mine in Zimbabwe.

The deal was made possible following the acquisition of a 95% interest in Eureka mine’s current holder Delta Gold Zimbabwe by Dallaglio Investments, which is 25.01% owned by Vast.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Dallaglio now holds 95% interest in the mine following the $4.485m acquisition agreement.

Funding for the transaction was arranged via a loan from Sub-Sahara Goldia Investments (SSGI), which owns an effective 24.99% interest in Dallaglio.

"We believe this to be a highly attractive acquisition target given the size of the resource and level of investment in equipment made to date."

Vast Resources chief executive Andrew Prelea said: “We are extremely pleased to announce the first new acquisition together with our strategic partners in Zimbabwe for many years.

“This demonstrates our continued belief in Zimbabwe and the ability to find robust assets to add to the Vast portfolio.

“We believe this to be a highly attractive acquisition target given the size of the resource and level of investment in equipment made to date, and I look forward to providing updates regarding development and commissioning at Eureka in the coming months.”

The transaction will also see Dallaglio offer a $1.8m financing package to Delta Gold in order to meet the company’s current creditor commitments.

Delta previously invested a historic amount of $30m at the Eureka site.

The mine was originally intended to achieve production levels of up to 70,000 ounces (oz) of gold (Au) per year from an open-pit operation.

Eureka is currently undergoing a care and maintenance programme, while plans have been outlined to restart production from the site in the near future.

The acquisition also provides Vast with access to a 1.8 million tonnes per annum (Mtpa) in-situ processing plant and associated infrastructure.

The mine has an indicated mineral resource of 13.4Mt at an average grade of 1.78 grams per tonne (g/t) of Au for 1,081,700oz Au.