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BH24 Reporter
HARARE – AIM-listed mining group Vast Resources Plc has exited gold mining in Zimbabwe through the disposal of its 25 percent stake in the Pickstone Peerless gold mine.
A contract of sale has been agreed for its 50,1 percent holding in Ronquil Enterprise, which houses the stakes in Pickstone Peerless stake and the Eureka Gold Mine. Management said the stake has been sold to some shareholders in the project.
The group said the transaction reduces other loan and liabilities on its balance sheet by nearly US$38 million to US$10,5 million.
Through the sale, a US$3.4mln loan to Sub-Sahara Goldia Investments (SSGI) is largely repaid and this gives it the ability to raise finance from other parties, said Vast.
Shareholders will be asked to extend its accounting period by a month to 30 April to allow the deal to complete.
Following the disposal, Vast will focus on the Heritage diamond concession in Zimbabwe and Baita Plai mine in Romania.
Said CEO Andrew Prelea:
“The Heritage Concession will require significant investment, not only financial but in human resource to enable near term positive cash flow for the business.
“The divesting of the gold assets in Zimbabwe allows us to focus all of our Zimbabwe finance and management on this key component of the company’s growth.”
In the six months to September, Pickstone Peerless made a profit of US$3,13 million on sales of US$19,3 million.
Bongani Ndlovu