Aim-listed Vast Resources has raised £600 000 through a placing of almost 400-million ordinary shares of 0.1p in the company at a price of 0.153p apiece.
The placing was undertaken by Axis Capital Markets, which was appointed as a joint broker to Vast.
The cash raised from the placing will be used to maintain the company’s working capital in light of the anticipated conclusion of the Chiadzwa Community Diamond Concession joint venture (JV), in Zimbabwe, and other costs owing to Covid-19 impacts.
Vast in September 2019 signed a JV agreement with Chiadzwa Mineral Resources, which is a company designated to represent the Chiadzwa community interests in the concession. This resulted in the formation of Katanga Mining.
A further JV agreement between Katanga and the Zimbabwe Consolidated Diamond Company, which is a government entity representing the country in the diamond mining sector, is set to be officially signed.
The Chiadzwa Diamond Fields located in Marange are widely regarded as the richest alluvial diamond deposits in the world.