- Internal processes were supposed to be finalized in March
- The 21-day lockdown declaration has thus affected the finalization process
- Finalisation expected to complete shortly
Harare – Vast Resources plc said the finalization process of all internal processes leading to the conclusion to the Chiadzwa Community Joint Venture remains to the completed following the declaration of a 21-day national lockdown by the government.
The AIM- listed company notes that it made an announcement on the 3rd of March 2020 stating that it had received official communication that all internal processes leading to the conclusion to the Chiadzwa Community Joint Venture were expected to be finalized in March and the Company‘s announcement of 23 March 2020 confirmed this expectation.
Following the 23 March 2020 announcement, the Zimbabwe Government declared a 21-day lockdown in response to the COVID-19 Pandemic commencing on 30 March 2020.
Consequently, the finalization process was not completed in March but finalization remains expected to complete shortly.
Vast Resources signed a Joint Venture Agreement with Chiadzwa Mineral Resources (Pvt) Ltd, a company designated to represent the Chiadzwa Community interests in the Concession resulting in the formation of Katanga Mining (Pvt) Ltd.
A further Joint Venture Agreement between Katanga and the Zimbabwe Consolidated Diamond Company (ZCDC), an entity representing the Government of Zimbabwe is yet to be officially signed which will entitle the ZCDC joint venture company to retain sale proceeds from the diamonds that are not required in Zimbabwe, offshore.
The Vast Resources Group divested its 25.01% stake in its Zimbabwean gold operations as they faced challenges in extracting cash from the operation for general corporate purposes.
The Group thus decided to concentrate its resources on the diamond sector.
The coronavirus which has affected over 900 000 people globally and killed close to 50 000 people is leaving a trail of destruction in most countries including the world’s biggest economies.
Businesses have shut down their operations either voluntarily or through lockdowns imposed by the governments.
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