logo-loader
viewVast Resources PLC

Vast Resources moves towards mining at Heritage in Zimbabwe

Snapshot

  • Diverse range of commodities in Zimbabwe and Romania 
  • Road map established for start of mining at Heritage diamond concession
  • Mining in Zimbabwe scheduled to start this year
Vast Resources

Quick facts: Vast Resources PLC

Price: 0.2935 GBX

AIM:VAST
Market: AIM
Market Cap: £30.15 m
Follow

 

What it does

Vast Resources PLC (LON:VAST)  is an AIM-listed mining company with a portfolio of assets in Zimbabwe and Romania.

It has exposure to a diverse range of commodities including copper, gold, silver, lead and diamonds.

What it owns

In Zimbabwe, Vast has the Heritage concession in the Marange Diamond Fields.

In Romania, assets include the Blueberry gold project, the Magura Neagra polymetallic licence and the Manaila polymetallic mine, the Baita Plai polymetallic mine, the Piciorul Zimbrului permit and the Carlibaba Manaila extension project.

How it's doing

A road map for moving forward with a plan to mine the Heritage concession following was established following meetings with local community leaders in Zimbabwe and the Zimbabwean parastatal Zimbabwe Consolidated Diamond Company (ZCDC).

The agreements concerning the Heritage Diamond Concession will now be directly between the Vast and the ZCDC rather than the local community, but the local community will continue to be a beneficial recipient of shared profits, as per the original agreement.

Vast said it expects to begin mining at Heritage before the end of the year and has everything in place to "hit the ground running" once it finalises contractual terms.

A separate financing process is ongoing – a draft term sheet was previously received from a Swiss Bank for a US$10mln loan – and due diligence is being conducted.

As an interim in November Vast set up a US$15mln financing arrangement with Atlas Capital Markets that saw convertible bonds issued at 90% of par value with 5% interest.

Vast also re-jigged the ownership of its diamond assets in November, with consultant Botswana Diamonds taking a 2.5% stake in a special purpose vehicle in return for five years worth of free services.

In Romania, Vast intends to bring forward some of the necessary pre-production expenditure for the Baita Plai project, which is expected to cut lead times to the start of production.

This work will include the start of installation work for a seven-kilometre tailings pipe to the tailings dam and the installation of new and independent electricity supplies.

Video

 

What the CEO says: Andrew Prelea

The Atlas facility will accelerate the start of production at Baita Plai while we continue to work on the establishment of a long term finance facility for Baita Plai and other assets in Romania, whether with the Swiss bank or otherwise.

Inflexion points

  • Long term finance secured for Romania assets
  • Agreement signed for Chiadzwa diamond fields
  • Details of Katanga JV structure
  • Production begins at either Chiadzwa or in Romania

 

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Vast Resources PLC named herein, including the promotion by the Company of Vast Resources PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Markets weaken as tit-for-tat tariff war between US and China intensifies

Mining Capital's Alastair Ford gives his take on the war of words between the US and China over tariffs. US President Donald Trump's told officials to look at a further $100bln of tariffs against China. Ford also talks through changes around Zimbabwe's export credit rules. In...

on 04/06/2018

3 min read