Vast Resources PLC will acquire an indirect 29.41% interest in the Blueberry polymetallic project in Romania through the company's newly formed subsidiary, EMA Resources Ltd.
The property is located in the so-called Golden Quadrilateral, an area in the country's Metaliferi Mountains that hosts the historic Baia de Aries gold mine, Gabriel Resources Ltd.'s Rosia Montana gold project and Euro Sun Mining Inc.'s Rovina Valley gold project.
In the deal, EMA will acquire the entire share capital of project owner Blueberry Ridge SRL. It will then issue 70.59% of the Blueberry Ridge shares to vendors, leaving 29.41% to the new Vast unit.
EMA's stake in Blueberry Ridge may also be reduced to 26.41%.
Vast aims to develop EMA into a stand-alone enterprise significant enough to justify an initial public offering, targeted by the end of 2019.
"Work has already started at Blueberry and we look forward to reporting the results of drilling in the coming weeks in order to begin to give the market a tangible sense of the size and quality of this significant mineralized system, in addition to our path to developing the project and ultimately crystallising value for Vast shareholders through a proposed IPO," Vast CEO Andrew Prelea said in an Aug. 15 release.