Big boost for Zim diamond industry

Business Top Stories Zimbabwe

Ndaka Majaka

LONDON Stock Exchange-listed miner, Vast Resources has secured a S$13,5 million financing arrangement that will enable it to start production at its joint venture diamond mining project in Zimbabwe’s Chiadzwa area.

The firm announced that shareholders had approved resolutions that will unlock funding for a project that it has partnered the Zimbabwe Consolidated Diamond Company (ZCDC).

Vast recently teamed up with the Chiadzwa community, creating a company called Katanga, which in turn partnered with ZCDC to mine diamonds.

In a statement the company said the financing arrangement would cover the costs of reaching production levels at both the Baita Plai mine in Romania and the Chiadzwa diamond project in Zimbabwe.

Vast added that a UK-based fund, Atlas Capital Markets, was to be issued with US$15 million of secured convertible bonds, which carried five percent interest per annum and would mature after two years.

“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,” Vast Resources chief executive officer, Andrew Prelea, said.

“We are pleased to have established a new relationship with Atlas Capital Markets and look forward to working together.”