Vast Resources PLC (LON:VAST) expects to sign its joint venture agreement next week with Zimbabwe’s government-owned diamond company, news that boosted its share price by 20% on Friday.
The Chiadzwa Community Diamond Project is a joint venture between Vast’s subsidiary Katanga Mining and state-owned Zimbabwe Consolidated Diamond Company (ZCDC) to mine the Heritage concession in the Marange Diamond Fields.
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Zimbabwe’s mining minister Winston Chitando verbally confirmed the deal on Friday morning, an announcement that was later acknowledged by Vast.
Two weeks ago the miner raised £1.8mln through the subscription of 902mln shares at a price of 0.2p each to help fund mining operations in Zimbabwe and at its gold, copper, silver and lead projects in Romania.
Shares were trading at 0.435p at noon on Friday.