AMN - ZIMBABWE: Vast gains access to diamond area

Vast Resources has concluded an agreement with Red Mercury (Pvt) Ltd for exclusive access to a diamond concession area in what has become known as the Marange Diamond Fields in the Chiadzwa region of Zimbabwe.

The purpose of the agreement is to carry out initial due diligence on the area with a view to concluding a joint venture agreement, the principal terms of which have been agreed, for exploration, mining and marketing.

The 15sqkm Heritage Concession is close to an area of Vast’s historic Marange Diamond Fields claim and is understood to be an extension of the same geological system.

Red Mercury is a company owned by the Marange-Zimunya Community Share Ownership 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.

Under the Agreement, Red Mercury will be responsible for providing a full mining licence and Vast will be responsible, subject to the results of exploration and subject to Zimbabwe’s future indigenisation laws when changed as anticipated not being an effective bar to investment, to procure funding such as is necessary to develop an efficiently operating diamond mine on the Heritage Concession.

Vast Resources Zimbabwe Ltd director Mark Mabhudhu, a former CEO of government-owned Zimbabwe Consolidated Diamond Company Ltd, said, “The concession area has not been mined before and by virtue of its geographical positioning within the Marange Diamond Fields it is anticipated to contain economically viable diamondiferous alluvials as well as conglomerate ore resources.”

Vast's chief executive Andrew Prelea said, “Shareholders will be aware that we have long held an historic diamond interest in Zimbabwe.

"With an evolving political backdrop, the country’s mining landscape is beginning to change and new opportunities are emerging.

"Whilst we await further developments on our historical claims, we are delighted to be strengthening our operating presence in the area and building on our relations in-country through this agreement with Red Mercury, which we believe paves the way for future growth.

“Having already agreed the principal terms of the future joint venture with the MZ Community Trust, we have confidence that once the due diligence period is complete, subject to final results, we can move swiftly in building a valuable diamond arm of our business, which is mutually beneficial for all stakeholders.

"We are grateful for the opportunity to be a part of the re-emerging diamond sector in Zimbabwe and look forward to providing the market with further updates on developments in due course.”

www.vastresourcesplc.com