Vast Resources pulls out of deal to buy Botswana's Ghaghoo diamond mine

GABORONE, Feb 1 (Reuters) - London-listed Vast Resources
said on Tuesday it had pulled out of a $4 million deal
to buy Ghaghoo diamond mine in Botswana from Gem Diamonds
, without giving reasons.

In August, Gem Diamonds entered into a binding share sale
agreement with Okwa Diamonds, a joint venture between Vast
Resources and Botswana Diamonds, for the sale of the mine which
has been under care and maintenance since 2017.

The deal was expected to be completed in the first quarter
of 2022.

"The company has informed Botswana Diamonds and Gem Diamonds
of its intention not to proceed with the acquisition of
Ghaghoo," Vast Resources said in a notice to shareholders.

In a separate statement, Gem Diamonds said the sale of the
mine was expected to continue as Botswana Diamonds had confirmed
its commitment to conclude the transaction as originally
envisaged as soon as possible.

"The parties have therefore agreed to extend the Longstop
Date under the Sale Agreement from 31 January 2022 to 31 March
2022 to allow Botswana Diamonds to secure an alternative
financing partner which will replace Vast Resources," Gem
Diamonds said.

Ghaghoo was estimated in 2014 to have a resource of 79.3
million tonnes at an average grade of 19.5 carat per hundred
tonnes and diamond value of $242/carat.
(Reporting by Brian Benza
Editing by Mark Potter)