Vast Resources has raised in aggregate £1.8 million, before costs, through the issue 902.5 million ordinary at a price of 0.20p per share. The AIM-listed mining company said the cash raised from the subscription, which includes payment for expenditure already incurred, will be used for mobilisation and for general purposes necessary for the establishment of its operations in Zimbabwe.
Vast said it also expects to sign binding documentation for a finance facility of $13.5 million later this week.
Vast recently signed a joint venture agreement with Chiadzwa Mineral Resources (CMR) to mine diamonds in Chiadzwa (Marange), in Zimbabwe.
CMR is a company designated to represent the Chiadzwa community interests in the Chiadzwa community diamond concession.
This resulted in the formation of Katanga Mining, which is in turn expected to sign a joint venture agreement this week with the state-owned Zimbabwe Consolidated Diamond Company (ZCDC).
Vast’s 25%-owned Dallaglio Investments also acquired a 95% interest in the Eureka gold mine, in Zimbabwe, earlier this year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
