4 October 2018
Vast Resources plc
(“Vast” or the “Company”)
Agreement with Botswana Diamonds plc re Heritage Concession
in the Marange Diamond Fields
Vast Resources plc, the AIM listed mining company with operations in
It was announced on 22 August 2018 that the Company had concluded an exclusive access agreement for initial due diligence and pre-agreed joint venture terms on the Heritage Concession in the Marange Diamond Fields with Red Mercury (Pvt) Ltd, (“Red Mercury”) a company owned by a Community Share Ownership Trust under the laws of Zimbabwe.
A summary of the principal terms of the Agreement are:
- A Special-Purpose Vehicle (“SPV”) will be created between
Botswana and Vast for the purposes of developing diamond resources within the Marange Diamond Fields - Pending finalisation by the Company of the detailed joint venture agreement with Red Mercury with no conditions precedent (“Finalisation”)
Botswana will give assistance in interpretation of geological and other information concerning the Heritage site. - At the time of Finalisation, or earlier if so determined by the Company, the initial shareholdings in the SPV will be
Botswana 13.33% and Vast 86.67% and the further terms of the Agreement set out below will come into effect. Botswana will provide to Vast free of charge the benefit of its knowhow as shall be appropriate on all aspects of exploration, mining, processing and marketing in relation to the Heritage Concession.- Vast will contribute up to
$1 million on loan account as the first funding to the SPV. - Any funds required in addition to
$1 million would be regarded as an Equity Contribution. - If an Equity Contribution is required
Botswana and Vast have the right to contribute pro rata to their shareholdings. If either party does not want to take up its full allocation the other party has the right to take up the allocation.
The method of funding overall for the Heritage Concession, which will be directed through the SPV, is a matter for consideration for the Board, but was addressed in the Circular from the chairman of the Company announced on 28 September 2018 in which he indicated that the Board might judge that it would be in shareholders’ interest that finance for the early stages of the Heritage Concession come directly from the Company, and that the Directors were seeking authority from the shareholders to raise additional equity for that purpose.
The first step in the due diligence on the Heritage Concession is a desktop review and this is far advanced and the results of this will be announced in due course.
Andrew Prelea, CEO, commented:
“Since signing the exclusive access agreement for initial due diligence and pre-agreed joint venture terms on the Heritage Concession in the Marange Diamond Fields with Red Mercury (Pvt) Ltd, Vast has commenced extensive internal work and engaged third party geologists to provide a field report and desktop study. The Company is now comfortable enough to enter into an agreement with
**ENDS**
For further information, visit www.vastresourcesplc.com or please contact:
Vast Resources plc Andrew Prelea (Chief Executive Officer) | www.vastresourcesplc.com +44 (0) 20 7236 1177 |
Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle | www.beaumontcornish.com +44 (0) 020 7628 3396 |
Brandon Hill Capital Ltd – Joint Broker Jonathan Evans | www.brandonhillcapital.com +44 (0) 20 3463 5016 |
SVS Securities Plc – Joint Broker Tom Curran Ben Tadd | www.svssecurities.com +44 (0) 20 3700 0100 |
St Brides Partners Ltd Susie Geliher Charlotte Page | www.stbridespartners.co.uk +44 (0) 20 7236 1177 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).
Notes
Vast Resources plc is an AIM listed mining and resource development company focussed on the rapid advancement of high quality brownfield projects and recommencing production at previously producing mines in
Vast Resources currently owns and operates the Manaila Polymetallic Mine in
The Company also has interests in a number of projects in