Due diligence & Joint Venture Terms on Community Trust Diamond Concession in the Marange Diamond Fie
(“Vast” or the “Company”)
Exclusive access for initial due diligence and Pre-Agreed Joint Venture Terms on a Community Trust Diamond Concession in the Marange Diamond Fields
Red Mercury is a company owned by the
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.
The agreed principles of the Joint Venture:
- give Vast effective control of exploration and mining on the Heritage Concession and also of marketing of the diamonds in consultation with Red Mercury;
- comply with current indigenisation laws of a 51/49 ownership split, but, should the future indigenisation laws ,if any, allow, provide for a profit split that will result in
Mercury/MZ Community Trustreceiving no less than 25% of the profits. plus a grant payment for the purpose of benefitting the local community equal to 10% of all expenditure on capital equipment procured for mining;
- require dividends to be paid annually of at least 50% of profits which can be distributed lawfully and without breach of contract to third parties;
- commit Vast to giving support to the local community and participating jointly with Red Mercury in cultural heritage ancestral activities;
- promote local jewellery manufacture with a proportion of the production
The due diligence access period is for two months or such longer period as the parties may agree (the ‘Due Diligence Period’). During the Due Diligence Period the parties are to use all reasonable efforts to conclude the ‘Joint Venture’ for exploration, mining and marketing, according to the main principles and commercial terms which have been established and pre-agreed.
Following the accession of the new Government in
Mark Mabhudhu, Director of
Andrew Prelea, Chief Executive of Vast, commented, “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 historic 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
For further information, visit www.vastresourcesplc.com or please contact:
Andrew Prelea (Chief Executive Officer)
+44 (0) 20 7236 1177
+44 (0) 020 7628 3396
+44 (0) 20 3463 5016
+44 (0) 20 3700 0100
+44 (0) 20 7236 1177
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).
The Company also has interests in a number of projects in
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