AMN - ZIMBABWE: Vast signs diamond agreement

Vast Resources has signed a Joint Venture Agreement with Chiadzwa Mineral Resources (Pvt) Ltd (CMR), a company designated to represent Chiadzwa Community interests in the Diamond Concession in Zimbabwe. This resulted in the formation of Katanga Mining (Pvt) Ltd for the newly named Chiadzwa Community Diamond Concession.

A further Joint Venture Agreement between Katanga and the Zimbabwe Consolidated Diamond Company (Pvt) Ltd (ZCDC), a government entity which represents the Republic of Zimbabwe in the diamond mining sector, is set to be officially signed during the first week of October.

Details of the Chiadzwa JV will be announced at the same time as the announcement of the ZCDC JV to which it is linked.

The company has settled the historic claims by mutual consent.

Vast chief executive officer Andrew Prelea said: "This is the beginning of an exciting era in Zimbabwe, and working together with government and community has been a great pleasure.

"Being a part of this landmark project is of great significance to all the stakeholders, being a first of its kind where the community will have a direct benefit from the natural resources in their community.

"Given the complexities of the matters that have had to be taken into consideration, we are very happy with the results to date.

"I would like to thank the company's team on the ground in Zimbabwe as well as the Government of Zimbabwe for all the guidance and support that they have given in the whole project.  We look forward to arrangements being concluded.

"I also look forward to providing an update regarding the financing mechanism for both the community concession and for Baita Plai in Romania shortly."

Vast has also raised more than £1.805 million through a subscription of shares in the company. The subscription is by an asset manager specialised in natural resources.

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 the operation in Zimbabwe.

The company also expects signing binding documentation for a finance facility of US$13.5 million shortly, at which point a further announcement will be made including the material terms of the facility and the status of the existing Mercuria funding and other initiatives.

www.vastplc.com