Latest News Editor's Choice

News / National

UK firm readies for Zimbabwe diamond mining

by Staff reporter
16 Apr 2019 at 07:05hrs | Views
UNITED Kingdom-based Vast Resources Plc (Vast) says it has raised £300 000 (US$393 130) through a placement and subscription of shares as it prepares for the signing of a joint venture contract at Chiadzwa.

This comes as the Aim-listed diversified miner last week announced it is disposing its gold business in the country to enable the group to refocus on its two growth opportunities ? the Heritage diamond concession in Zimbabwe and Baita Plai polymetal mine in Romania.

"The placing and subscription will be applied as to 300 000 to maintain the company's operations at Baita Plai and for general corporate purposes prior to the receipt of more substantial funding post the proposed restructuring of the company, and as to 300 000 for working capital at the Heritage Concession in Zimbabwe which will include preparation for immediate mobilisation on signing of the joint venture contract with the Chiadzwa Community Trust," Vast said.

Hence, Vast raised a total of 600 000 before costs through a placing and subscription of 444 million ordinary shares of 0,1p in the company at a price of 0,135p per ordinary share. The resources firm said the placing was for 407 million ordinary shares, and the subscription was for 37 million shares, of which 29 million were taken up by director, Roy Tucker while 7,4 million shares were taken up by Andrew Prelea.

"The placing was for 407 million ordinary shares and was undertaken by the company's joint broker SVS Securities plc," the miner said.
Vast said 222 million of the placing and subscription shares were issued under existing authorities available to the board relating to Baita Plai and for general corporate purposes and 222 million of the placing and subscription shares were issued under existing authorities available to the board relating to exploration for and mining of diamonds in Zimbabwe as approved by Shareholders on 11 March 2019.

Recently, the resources firm decided to sell its 50,01 percent interest in Ronquil Enterprises (Ronquil) through which it holds its remaining 25,01 percent economic interest in Pickstone Peerless and associated assets - principally Eureka Gold Mine.

Vast was appointed venture partner by the Chiadzwa Community Development Trust, enabling the firm to mine diamonds at the Heritage concession.

In 2016, several companies were booted out of Chiadzwa after their licences had expired, resulting in the formation of the Zimbabwe Consolidated Diamond Company (ZCDC). And having promulgated a new diamond policy late last year, President Emmerson Mnangagwa's government believes it is ensuring accountability in the mining, processing and selling of precious minerals.

According to the recently-promulgated law, only Rio Tinto-owned Murowa, Vast, ZCDC, Anjin and Alrosa will be allowed to mine gemstones in the country.

The policy also covers all facets of diamond mining in Zimbabwe such as exploration, processing, beneficiation, marketing, security and law enforcement as well as valuation.

Source - Daily News