JOHANNESBURG (miningweekly.com) – A financing agreement between Aim-listed miner Vast Resources and SSCG Africa Holdings (SSA) has been extended once again, pending approval by the Reserve Bank of Zimbabwe.
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 noted that correspondence from and discussions with Canape's bankers in connection with the application for approval indicate that the necessary approval for the assignment will be forthcoming, and all efforts continue to achieve this as soon as possible.
While the approval of the assignment remains outstanding, a formal extension to June 2 has been agreed by all parties.
Vast CEO Roy Pitchford said the company remained confident that the transaction with SSA would be successfully concluded in the near term.
“Although this process has been subject to frustrating administrative delays, SSA has reconfirmed its intent to finalise the transaction and remains wholly supportive of Vast."