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Vast Resources aims for diamond production at Heritage in H2

Vast Resources PLC plans to start production from the Heritage diamond concession area in Zimbabwe's Marange diamond fields in the second half.

The company entered into a joint venture on the property with Red Mercury Pvt. Ltd. in 2018.

Vast said it has not received any official notification to start exploration in Zimbabwe "despite reports in the press that the Minister of Mines has stated that the company will be invited."

In a Jan. 15 letter to shareholders, Chairman Brian Moritz asked investors to vote in favor of resolutions calling for the issue of new shares and disapplication of statutory pre-emption rights in the upcoming Jan. 31 meeting.

The board intends to issue £2.0 million of shares to secure funding for the mining operation and a further £1.0 million of new shares to create headroom in connection with a US$3.2 million convertible loan from Bergen Global Opportunities Fund LP.

The company agreed in mid-December 2018 with Bergen to issue zero coupon convertible securities for a nominal amount of up to US$3.2 million in two tranches.

Additionally, Vast said it will need additional capital to develop its Baita Plai polymetallic mine in Romania as the "delay in obtaining the right to mine has been very costly for the company."

The second tranche of Mercuria financing of US$5.5 million is expected shortly; however, an accelerated move to full production of 13,000 tonnes per month will require additional capital expenditure.

At the shareholder meeting, the board will request authority to issue £800,000 of new shares, which will fund development at Baita Plai and exploration at its other Romanian properties.