Vast Resources says it has signed a binding conditional bond issue deed for a facility of up to US$15 million, via the issuance of secured convertible bonds to UK based fund Atlas Capital Markets, funds that will be partly used to bring Vast’s Zimbabwe diamond project into to production.
In an announcement Thursday, Vast said the facility offers full funding to reach production at the new operation at Chiadzwa that Vast, through its Katanga partnership with the local community, is developing as a joint venture with the Zimbabwe Consolidated Diamond Company (ZCDC). Some of the money will also fund Vast’s operations in Romania.
“The Bonds provide the required capital to enable the Company to bring its two core assets, Baita Plai in Romania and the Diamond Concession in Zimbabwe, into production. The agreed non conversion period, the early redemption and cash settlement options give us flexibility and enable us to limit dilution,” Vast Resources CEO Andrew Prelea said.
“We are pleased to have established a new relationship with Atlas Capital Markets and look forward to working together.”
The bonds will be released in four tranches. They are issued at 90% of their par value, bear a coupon of 5% per annum and have a maturity date of two years from the date of each issuance providing net proceeds to Vast of up to US$13.5 million.
Vast potential
In June, Vast announced that it was in talks with ZCDC on a joint venture to mine the Heritage concession at Chiadzwa. Agreement on the joint venture with ZCDC has been reached and is expected to be signed shortly, Vast announced last month.
Ahead of that ZCDC partnership, Vast signed in September agreed a joint venture with Chiadzwa Mineral Resources, a company designated to represent the Chiadzwa community interests in the diamond concession.
The company, listed on the AIM exchange in London, recently sold its gold interests in Pickstone and Eureka mines to Padenga Holdings to focus on the diamond project.
