AIM-listed mining group, Vast Resources Plc Monday disclosed it had finalised a financial deal it negotiated with international financial institutions for its Chiadzwa diamond venture in Manicaland Province.
Last year, the United Kingdom based Vast Resources announced that it had agreed a joint venture deal with Chiadzwa community to create a company called Katanga, which in turn partnered State-owned Zimbabwe Consolidated Diamond Company (ZCDC).
The company’s chief executive Andrew Prelea has said the deal to mine Heritage concessions is, however, awaiting the finalisation of the agreement with government through ZCDC.
Prelea did not disclose the size of the financial package required for the diamond project in Chiadzwa.
It is, however, understood that the new company requires about US$10m for exploration.
“The Company has arranged financing which it has prioritised for the Baita Plai Polymetallic Mine (“BPPM”) in Romania and the Chiadzwa Community Concession in Zimbabwe,”Prelea said
The delay to finalise the Chiadzwa deal is said to be due to technical issues, according to well-placed sources in the Ministry of Mines and Mines Development.
Discussions, however, Prelea said were underway to finalise the joint venture deal, which will enable the concession to procure a special grant for the mining of diamonds.
He said: “Discussions continue regarding the conclusion of the company’s diamond joint venture with its Zimbabwe stakeholders. These discussions are in line with previous expectations, save on timing.”
Vast’s portfolio includes an 80% interest in the Baita Plai Polymetallic Mine in Romania, where work is currently underway towards developing and recommissioning the mine and the Community Concession Block in Chiadzwa, Zimbabwe.
Vast Resources also owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance.