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.
