Vast Resources, which is currently awaiting the finalisation of a joint venture between its subsidiary Katanga Mining and the Zimbabwe Consolidated Diamond Company (ZCDC) in the post Covid-19 lockdown period, expects the project to play its part and be a contributor to the country's economic recovery programme post the pandemic. The AIM-listed company said it continues to act in good faith to the benefit of Zimbabwe and the entire Chiadzwa community as well as in accordance with the instructions and direction of the relevant governmental authorities.
“The company remains confident that despite the recent COVID19 lockdown and other delays that have arisen in recent months due to matters unrelated to the relationship between the Zimbabwean Government and Vast Resources PLC, the project will be continued to the benefit of all stakeholders,” it said.
Vast recently said that it raised £600,000 before costs through a placing of 392,1 million ordinary shares to maintain its working capital.
The mining company expected the Chiadzwa deal to be finalised last March, but this was put on halt after the Zimbabwean government declared a 21-day lockdown, which was recently extended by two weeks.
Katanga Mining - a joint venture between Vast and the Chiadzwa Community Development Trust will work with the ZDC to develop the diamond deposit.
Vast 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”.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
