AIM-listed Vast Resources says it has everything in place to hit the ground running once it concludes an agreement with the Zimbabwe Consolidated Diamond Company (ZCDC). Vast has already concluded a joint venture with Chiadzwa Mining Resources, a company designated to represent Chiadzwa Community interests in the Chiadzwa Community Diamond Concession.
Its current discussions to finalise the joint venture agreement with ZCDC will enable the concession to procure a special grant for the mining of diamonds.
“We enter 2020 in a far stronger position than at any time in the company’s history,” Vast chief executive Andrew Prelea was quoted as saying by Proactive Investors.
“… we are well placed to execute our Zimbabwe diamond strategy as soon as the agreement with ZCDC is concluded, a process that we believe will be concluded shortly.”
Vast recently revised an agreement with Botswana Diamonds, which will see the latter acquire a 2.5% interest in the cashflows generated from Vast’s share in the Chiadzwa concession in exchange for providing “know-how for all aspects of exploration, mining, processing and marketing”.
Vast recorded a loss after tax of $3.5 million for the six months to 31 October, a 36% decrease compared to $5.5 million, a year earlier.
Foreign exchange losses also contracted to $800,000 from $1.4 million in the six months.
The company’s cash balance for the period was $1.2 million compared to $775,000 in 2018.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
