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Vast Resources sets up SPV for Zimbabwe diamond project

Consultancy partner Botswana Diamonds will now have a 2.5% stake

Vast Resources PLC -

Vast Resources PLC (LON:VAST) has re-jigged the ownership structure of its Chiadzwa diamond concession in Zimbabwe.

Consultancy partner Botswana Diamonds PLC (LON:BOD) will now have a 2.5% stake and Vast 97.5% in a special purpose vehicle (SPV) that will house the assets in Marange’s diamond fields.

As part of this new agreement, BOD will supply consultancy services free of charge for five years while Vast will provide all capital requirements up to US$10mln.

In a statement, Vast’s chief executive Andrew Prelea said: “As a result of the recent agreement with the Chiadzwa Community and pre-agreed joint venture terms on the Chiadzwa Community Diamond Concession in the Marange Diamond Fields, the company was required to review its current agreement with Botswana Diamonds and decided that we wished to continue our relationship with BOD as a consulting party that can add significant value to the project.”

Vast is developing the project through Katanga Mining, a joint venture with the local community at Chiadzwa.

 

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Price: 0.1575 GBX

AIM:VAST
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