JOHANNESBURG (miningweekly.com) – Aim-listed Vast Resources on Friday said it has drawn down $3-million of its $8-million financing arrangement with SSCG Africa Holdings (SSA), despite approval by the Reserve Bank of Zimbabwe (RBZ) still being outstanding.
In January, the parties entered into an $8-million agreement, comprising a $4-million long-term loan and a $4-million payment for 49.99% of Vast’s principal Zimbabwean assets.
The transaction was dependent on the approval of the assignment of 49.99% of Vast's loan account with Canape by April 7, which was later extended to May 19.
However, the company notes that correspondence from and discussions with Canape's bankers in connection with the application for approval by the RBZ indicate that the necessary approval for the assignment will be forthcoming, and all efforts continue to achieve this as soon as possible.
Vast said it continued to work closely with the RBZ to conclude the assignment; however, SSA agreed to advance the final $1-million of the loan to show its continued support.
Vast’s acquisition of a 49.9% interest in the Sinarom Mining Group, valued at $735 000, was due on April 30, as a final instalment for completion of the acquisition – $100 000 of this was paid on April 30 and the drawdown from SSA has been used to fund the balance.