RNS3 Dec 2019 10:31
Revised Agreement with Botswana Diamonds plc announced on 28 November
2019
Clarification
Vast Resources plc, the AIM listed mining company with operations in
Romania and Zimbabwe, would like to clarify the announcement made on 28
November 2019 regarding its agreement with Botswana Diamonds PLC ('BOD')
(the 'New Agreement') in connection with the Chiadzwa Community Diamond
Concession.
-- Discussions and agreements have been in process with BOD since May 2018
and therefore pre-date any discussions and agreements with the Chiadzwa
Community. BOD has vast experience and expertise in the exploration and
development of diamond resources internationally, and the New Agreement
was concluded for the sole purpose of securing BOD as a technical partner
in the diamond operation.
-- The 28 November Announcement informs the public of the shareholding
structure as between Vast and BOD in the UK holding company, Vast
Resources Enterprises Ltd, that will invest into Katanga Mining (Pvt) Ltd
('Katanga') which company will then join with ZCDC to own the Joint
Venture operating company, Chiadzwa Community Company (Pvt) Ltd (CCC)
duly registered for this purpose that will carry out exploration,
resource development and mining in the Chiadzwa Community Diamond
Concession. The New Agreement has no impact whatsoever on the
shareholding either of the Chiadzwa Community through its Trust, the
Chiadzwa Community Development Trust which was established in 2014 under
the laws of Zimbabwe or of ZCDC in the mining operation.
-- All distributions to the Chiadzwa Community Development Trust in
accordance with the draft agreement between Katanga and ZCDC are to be
approved and monitored by the Board of Directors of CCC as the Joint
Venture operating company between Katanga and ZCDC. All such
distributions will be in accordance with an agreed Community development
plan that will constitute an open and transparent Corporate and Social
Responsibility Program.
-- All negotiations and agreements have been conducted in utmost good faith
and in a completely transparent manner for the long term benefit of all
stake holders.