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Oliver Kazunga, Senior Business Reporter
AIM-listed Vast Resources says the Reserve Bank of Zimbabwe has approved its $4 million disposal of a non-controlling interest in its Zimbabwean gold assets.

The move paves way for the advancing of $8 million financing of mining projects in Romania. Vast Resources is headquartered in Romania and owns 50 percent of Pickstone-Peerless Gold Mine in Chegutu while Grayfox Investments, a consortium of local investors controls the other half.

Early this year, Vast Resources said it was disposing its stake to SSCG Africa Holdings (SSA), a Mauritian investment firm, which would acquire about 50 percent non-controlling interest of Vast’s shareholding.

“The mining company is pleased to announce that it has now received approval of the assignment of 49.99 percent of Vast’s loan account with Canape by the Reserve Bank of Zimbabwe ensuring that the $4 million payment from SSCG Africa Holdings Ltd and its group SSA can now be transferred to Vast,” said the company.

“This will complete the $8 million financing announced on January 30, 2017 principally to advance the company’s core activities in Romania.”

It is believed that under the agreement with SSA, Vast Resources would also receive a $4 million loan payable in four years at 12 percent interest rate from the Mauritian investment company.

Vast Resources chief executive officer Mr Roy Pitchford was quoted commenting:

“I am delighted to report the formal approval from RBZ for our disposal of a non-controlling interest in our Pickstone-Peerless Gold Mine and Giant Gold Project in Zimbabwe.

“This transaction, together with the possible further transactions with Sinarom will provide us with the capital to move forward with our optimisation plans for our producing Manaila Polymetallic Mine and other interests in Romania.

“We believe this area will yield the best long term value opportunity for the company without the need to dilute our shareholders.

“Importantly, we have also retained the controlling interest in our Zimbabwean projects and have exposure to the upside, which these may deliver through our ongoing 25 percent economic interest,” he said.

@okazunga