Vast Resources PLC (LON:VAST) said it is “near to finalisation” on documentation for enough funding to cover commissioning at the Baita Plai polymetallic mine in Romania and to begin diamond mining in Zimbabwe.
After a significant change of direction during the 13 month period to 30 April, Vast has positioned itself to focus on two key mining opportunities in order to start production in the new financial year.
WATCH: Vast Resources 'at the finish line' with Chiadzwa Community Diamond Concession
As part of this process, Vast divested its 25.01% stake in its Zimbabwean gold operations, reduced debt by US$21.4mln to US$5.5mln, strengthened its management team, and redirected resources.
In Romania, the process of negotiating and agreeing the detailed documentation necessary for the refinance of Baita Plai has “reached an advanced stage”, said chairman Brian Moritz.
Vast has begun preparations so that the mine can be commissioned within three months of the drawdown of finance.
In Zimbabwe, where Vast owns the Heritage concession in Marange diamond fields, a formal joint venture agreement was signed with the Chiadzwa Community and the government-owned Zimbabwe Consolidated Diamond Company (ZCDC) since the year-end and the AIM-listed company expects that this JV will “very shortly” be given the right to mine the local concession.
The cash balance at the period end was US$ 0.57mln.
Vast reported a £9.1mln loss from continuing operations.