Vast Resources secures extension on debt repayment as it concludes diamond settlement in Zimbabwe
As of May 15, 2023, Vast's total debt to Mercuria and Alpha, amounting to c. £7.3m, was scheduled for repayment. However, the company is currently finalising documentation for an extension until June 30, 2023, to allow sufficient time to conclude the settlement of historic claims in Zimbabwe.
Vast Resources CEO Andrew Prelea is presently in Zimbabwe as the company finalises the recovery of a historic parcel of 129,400 rough diamonds held in safe custody at the Reserve Bank of Zimbabwe, following a High Court Order in the company's favour. The recovery of these diamonds will aid in the settlement of historic claims in Zimbabwe.
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For several years, Vast had been in a legal battle over custody of the referenced parcel of diamonds in Zimbabwe.
In February 2023, the AIM-listed miner reported that the High Court of Zimbabwe had granted a default order relating to releasing the parcel, finally settling the matter and officially setting off the process of releasing the parcel into Vast's possession.
Once the company progresses through the final stages of recovering the parcel, Vast will be able to refocus on other opportunities in Zimbabwe. These include the commencement of the joint venture mining agreement on the Community Diamond Concession, Chiadzwa, in the Marange Diamond Fields.
Additionally, Vast will be able to turn its attention to debt repayment to Mercuria and Alpha. Funds attained from the two companies were used to support Vast's flagship Baita Plai polymetallic mine in Romania. Baita Plai continued to increase production volumes in the 6 months to 31 October 2022, along with more recently reporting that tonnes mined in Q1 2023 increased by 20% despite January and February being short months of production.
Vast told investors it will soon update the market with further details on the settlement and debt repayment, so make sure to the company for further updates.
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