The AIM-listed mining company ,Vast Resources PLC saw its shares trading 20 % higher on Friday after announcing that the Chiadzwa community diamond project deal will be signed next week.
by Gift Kugara
In an official confirmation statement , the company said Hon. Minister of of Mines and Mining Development Mr Winston Chitando announced the signing of the Agreements between its Zimbabwean subsidiary company Katanga Mining (Pvt) Ltd – (which is jointly owned with Chiadzwa Mineral Resources (Pvt) Ltd) – and Zimbabwe Consolidated Diamond Company (Pvt) Ltd (‘ZCDC’).
Chitando said Vast had formed a company, Katanga Mining Pvt Ltd, with the community in the eastern Chiadzwa diamond fields.
That company would sign a joint venture mining agreement with Zimbabwe Consolidated Diamond Company which holds the mining rights, he said.
Financial details have not been disclosed although the principal terms of the JV were agreed in August 2018 , including paying annual dividends of at least 50% of profits; committing Vast to giving support to the local community and participating jointly with Red Mercury in cultural heritage ancestral activities; and promoting local jewellery manufacturing with part of the production. Additional Reporting : Reuters /Mining-Journal