The delayed strategic investment in Vast Resources PLC (LON:VAST) by SSCG Africa (SSA) has been given the go-ahead by the Reserve Bank of Zimbabwe (RBZ).
The cash injection by SSA was announced at the end of January and was dependent, among other things, on official approval by the RBZ of the assignment of 49.99% of Vast’s loan account with Canape. This approval has now been received.
WATCH: Vast Resources' boss hails approval of SSCG Africa investment
Shares in Vast rose 6% to 0.472p on the news.
"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,” said Roy Pitchford, chief executive officer of Vast.
The company reiterated that discussions are continuing concerning further transactions in relation to Vast’s wholly-owned subsidiary, Sinarom Mining Group SRL, which could include the introduction of a joint venture partner, and / or securing debt at the subsidiary company level to help increase production at both Manaila polymetallic mine and advance the newly acquired Piciorul Zimbrului and Magura Neagra prospecting licences that are located not too far away from Manaila.
READ Vast Resources confident SSA investment will be completed in the near term
“This [SSA] transaction, together with the possible further transactions with Sinarom as referred to above, will provide us with the capital to move forward with our optimisation plans for our producing Manaila Polymetallic Mine and other interests in Romania,” Pitchford noted.
“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% economic interest."