Vast Resources to finalise diamond investment

Ishemunyoro Chingwere Business Reporter
AIM-listed mining and resource development concern, Vast Resources told its shareholders that it is hoping to finalise an investment deal in Zimbabwe’s diamond mining as investors continue to circle on the local economy.

The new dispensation under President Mnangagwa has embarked on an investor charm offensive under the “Zimbabwe is open for business” mantra that has seen the signing of several investment deals as well as loads of enquiries.

Vast Resources had initially signed a deal that would have seen the company, with a portfolio of high quality polymetallic and gold mines in Romania and Zimbabwe, utilising mining rights under a joint venture arrangement with the Chiadzwa Community Development Trust.

However, the new arrangement will now see the UK-listed mining firm partnering with state mining entity — the Zimbabwe Consolidated Diamond Company (ZCDC) — in exploiting the Chiadzwa diamond deposits.

“Vast Resources plc, the AIM-listed mining company, is pleased to inform the market that following meetings that took place in Harare last week between Vast senior management, the local community leaders and the parastatal Zimbabwe Consolidated Diamond Company Ltd (ZCDC) a road map to closing the agreements that will enable the Company to mine on the Heritage Concession has now been established,” said the company in a statement yesterday.

“The agreements concerning the Heritage Diamond Concession will now be directly between the Company and the ZCDC rather than the local community, but the local community will be maintained as a beneficial recipient of shared profits as per the original agreement,” reads the statement.

Andrew Prelea, the miner’s Chief Executive Officer added, “After taking part in the meetings last week with our senior management, the community chiefs and ZCDC, I am pleased to say that the timeline to closing the agreements will now be accelerated.

“I plan to return to Zimbabwe shortly for what I hope will be the finalisation of the contractual terms, and also to establish the commencement of the project.

“This amendment to the structure of the arrangement should not only accelerate the process to commencement, but should also provide the Company further opportunities to work with the ZCDC,” the CEO said.