JOHANNESBURG (miningweekly.com) – Aim-listed Vast Resources’ 25%-owned group company Dallaglio Investments has acquired a 95% interest in the Eureka gold mine, in Zimbabwe.

Dallaglio acquired a 95% interest in Delta Gold Zimbabwe, which owns the Eureka mine, from Alpha Resources and the Industrial Development Corporation of South Africa, thereby providing Vast with an indirect 23.75% interest in Eureka.

The $4.49-million purchase price is financed by a loan from Sub-Sahara Goldia Investments (SSGI) to Dallaglio.

SSGI has an effective 24.99% interest in Dallaglio and, therefore, funding for the acquisition has been sourced by Vast's associated entities in Zimbabwe without recourse to Vast.

"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,” said Vast CEO Andrew Prelea.

He added that the Eureka mine has attracted investment in excess of $30-million in the late 1990s.

“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.”

Additionally, Prelea noted that the knowledge that the company has accumulated from its operations at Pickstone-Peerless, also in Zimbabwe, is invaluable in assessing the true value of dormant mines such as Eureka, that can be brought in to commercial production in the near term.

“At the beginning of this year, I mentioned we would be pursuing new opportunities in both Zimbabwe and Romania that will create further value to shareholders utilising external funding and this is the first of those opportunities to do so.”

Further, in light of the transaction and of anticipated further transaction opportunities, Vast is giving consideration to the current holding structure of its Zimbabwe assets.