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Vast Resources to exit gold production with sale of Pickstone Peerless in Zimbabwe

A contract of sale has been agreed for its 50.1% holding in Ronquil Enterprise, which houses the stakes in Pickstone Peerless stake and the Eureka Gold Mine

diamonds
Heritage is a diamond concession

Vast Resources PLC (LON:VAST) has agreed on the sale of its 25% stake in the Pickstone Peerless gold mine in Zimbabwe.

A contract of sale has been agreed for its 50.1% holding in Ronquil Enterprise, which houses the stakes in Pickstone Peerless stake and the Eureka Gold Mine.

In the six months to September, Pickstone Peerless made a profit of US$3.13mln on sales of US$19.3mln.

READ: Vast Resources to keep Manaila mine on care and maintenance until restructuring completes

Vast said the transaction reduces other loan and liabilities on its balance sheet by nearly US$38mln  to US$10.5 mln vs US$48.3mln.

Through the sale, a US$3.4mln loan to Sub-Sahara Goldia Investments (SSGI) is largely repaid and this gives it the ability to raise finance from other parties, said Vast.

Shareholders will be asked to extend its accounting period by a month to 30 April to allow the deal to complete.

Following the disposal, Vast will focus on the Heritage diamond concession in Zimbabwe and Baita Plai mine in Romania.

Andrew Prelea, Vast’s chief executive, said:  “The Heritage Concession will require significant investment, not only financial but in human resource to enable near term positive cash flow for the business. 

“The divesting of the gold assets in Zimbabwe allows us to focus all of our Zimbabwe finance and management on this key component of the company’s growth."

Quick facts: Vast Resources PLC

Price: 0.4 GBX

AIM:VAST
Market: AIM
Market Cap: £41.09 m
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