eBusiness Weekly
Tawanda Musarurwa
Diversified mining firm, Vast Resources, says it remains confident of concluding a joint venture (JV) agreement with the Government over its diamond project in Chiadzwa.
Last month, the resources firm said conclusion of the deal would be delayed due to the outbreak of the coronavirus pandemic.
But after recently concluding a £600 000 capital raise for the diamond project, the company added that conclusion of the JV agreement was imminent.
Vast Resources raised £600 000 in a share placing.
The AIM-listed firm said it raised the funds through a placing of around 392,1 million shares at a price of 0,153p each, a 10 percent discount to its closing price last Wednesday.
“The cash raised from the Placing will be used to maintain the company’s working capital in the light of the anticipated conclusion of the Chiadzwa Community Diamond Concession joint venture in Zimbabwe (‘Chiadzwa JV’) and potential increased mobilisation and other costs due to the impact of the Covid-19 pandemic,” said the company.
“The company remains confident that the Chiadzwa JV will nevertheless be concluded shortly.”
Last year, Vast Resources signed a joint venture agreement with Chiadzwa Mineral Resources (CMR) to establish Katanga Mining (Pvt) Limited.
The company is looking to develop the Heritage diamond concession in the Marange diamond fields in Chiadzwa, and CMR essentially represents the Chiadzwa community interests.
Now the miner awaits a further joint venture agreement between Katanga and the State-run Zimbabwe Consolidated Diamond Company (Pvt) Ltd (ZCDC).
