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LocalNews

Vast panics over diamond JV

By Business Reporter – Monday 20 January 2020

HARARE (Mining Index) – VAST Resources Enterprises (VRE) shareholders are anxious over the unexpected delay in concluding the Zimbabwe Consolidated Diamond Company (ZCDC) joint venture agreement but remain optimistic they will commence mining operations in Chiadzwa soon.

In an overview of the company’s interim results for the six months to 31 October 2019, the company indicated that while negotiations are in line with expectations, conclusion of the final agreement remain on ice.

Vast says discussions are in line with expectations, save on timing.

“While we appreciate and share shareholders’ concern in the unexpected delay in signing this second agreement with ZCDC, discussions with the various Zimbabwe stakeholders are in line with previous expectations , save on timing, and we are confident that we will commence our mining operations in the near future,” said Andrew Prelea, Vast Resources Enterprises Ltd (VRE) Chief Executive Officer.

On 26th September 2019, VRE concluded a joint venture with Chiadzwa Mining Resources (Pvt) Limited, a company designated to represent Chiadzwa Community interests in the Concession.

However, a further JV between Katanga ZCDC remains in limbo.

Finalisation of the second JV will enable the Chiadzwa Community Diamond Concession to procure a special grant for the mining of diamonds within the Concession and establish final interests of Vast, the Community, and ZCDC in Chiadzwa Community Company (CCC).

“As Andrew highlights in his report, we were concerned in the unexpected delay in signing the ZCDC joint venture agreement but we are pleased that discussions with the various Zimbabwe stakeholders are in line with previous expectations, other than on timing, and we remain confident that we will commence our mining operations in the near future,” reiterated Brian Moritz, VRE Chairman.

“While good progress was also made in concluding a joint venture agreement with the Chiadzwa Community, to date we have been unable to finalize the joint venture agreement with ZCDC, which, amongst other matters, will enable the Company and our other Zimbabwean stakeholders to procure a special grant for the exploration, development, and mining of the Concession,” said Moritz.

Prelea added that full details of the Chiadzwa joint venture will be announced at the same time as the conclusion and announcement of the ZCDC joint venture to which it is linked.

On 28th November 2019, Vast revised an existing agreement with Botswana Diamonds PLC (BOD) in which BOD becomes a consulting partner in the development of the Chiadzwa Community Concession in Zimbabwe, providing know-how on all aspects of exploration, mining, processing and marketing.

Upon finalising the Katanga/ZCDC agreement, BOD will receive an interest of 2.5 percent in Vast. ENDS// www.miningindex.co.zw

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