Vast Resources raises £860k for Marange diamonds due diligence

Zimbabwe mining investment
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AIM-listed miner Vast Resources PLC has raised £863,750 through a subscription, part of which will be used for due diligence at the Marange Diamond Fields.

The company announced recently that it had reached an agreement giving it access to the diamond fields in Chiadzwa. Vast will partner Red Mercury a company owned by the Marange-Zimunya Community Share Ownership Trust Community Trust on the project.

“The opportunity which Vast has been offered in the Marange Diamond Fields in Zimbabwe is exceptional and the board has established the absolute priority to begin due diligence works on the ground as quickly as practicable,” said chief executive Andrew Prelea.

“I am delighted to report that we have received significant support for this strategy to expedite work at Marange, resulting in today’s subscription for new shares which will deliver over US$1.1mln to Vast – allowing us to commence work on this new concession and also provide funding for certain other interests in our portfolio.”

Under the terms of the Marange agreement, Vast will have the right to carry out initial due diligence on the area with a view to concluding a joint venture agreement, the principal terms of which have been for exploration, mining and marketing of any diamonds recovered.

This new diamond venture broadens Vast’s investments in Zimbabwe. The company already runs Pickstone, a gold mine near Chegutu, and holds a 23.75 percent indirect interest in Eureka, the Guruve gold mine that recently reopened.