Harare - Vast Resources has announced that it is ready to start diamond mining operations on the Heritage Concession in Zimbabwe.
The development comes after the miner announced a positive update on financing and the right to mine diamonds on the Heritage Concession.
“The Company is pleased to announce that following the announcement of 14 February 2019 concerning the right to mine diamonds on the Heritage Concession the preparation of the joint venture agreement between the Company and the Chiadzwa Community Development Trust has now reached the form of an advanced draft.
“Following the signature of the joint venture agreement, operations at the Heritage Concession are able to commence on the ground immediately.”
In addition, the company has advanced discussions with a potential cornerstone equity investor to the extent that the investor has now expressed a definite interest to proceed in principle.
“The interest of both the financial institutions and the potential cornerstone investor is conditional on the passing of the resolution by shareholders to approve the restructuring of Vast Resources which will be effected by the sale of its interest in Pickstone Peerless gold mine and other gold assets in Zimbabwe.
“The interest is also dependent upon completion of due diligence and the signing and completion of definitive legal agreements.”
The miner last week announced that it has concluded a conditional sale contract for the proposed disposal, to Southern African Trade Finance (SATF), of its noncore 50.01 percent interest in Ronquil Enterprises - the holder of its Zimbabwe gold assets; and the remaining 25.01 percent economic interest in the Pickstone Peerless gold mine and associated assets, principally the Eureka gold mine.
The consideration from SATF is $2.5 million, payable outside Zimbabwe, plus RTGS$2.5 million (Zimbabwe’s new local currency), equating to $1 million payable in Zimbabwe.
Last year, diamond explorer, Botswana Diamonds concluded an agreement with Vast which set in motion the development of their concessions in the prolific Marange Diamond Fields.
Botswana Diamonds also had a separate agreement with Vast Resources which will cover the joint development of diamond properties outside of the Marange Diamond Fields (MDF), which will be a straightforward 50/50 joint venture, though the initial focus of the joint work is on the MDF.
Vast Resources, has exclusive access to key diamond concessions in the MDF of the Chiadzwa region of eastern Zimbabwe, through an agreement with a community organisation.
In August 2018, Vast Resources concluded an agreement with Red Mercury (Pvt) Ltd for exclusive access to the Heritage concession area which is popularly known as the MDF in the Chiadzwa region of Zimbabwe.
Red Mercury is a company owned by the Marange-Zimunya Community Share Ownership Trust (MZ Community Trust), which is registered as a Community Share Ownership Trust under the laws of Zimbabwe and which has received an undertaking from the Government of Zimbabwe for a licence to mine on the Heritage Concession.
Vast Resources is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield projects by recommencing production at previously producing mines.
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