BULAWAYO, May 23 (The Source) – London-listed junior miner Vast Resources has postponed the conclusion of the sale of nearly 50 percent of its shares at its Zimbabwe operations citing delays in approval of the transaction by the Reserve Bank of Zimbabwe.
Vast Resources, which owns 50 percent of the mine, announced in January that it was selling 49.99 percent of its shares to a Mauritian investment company, SSCG Africa Holdings, for $4 million to minimise exposure to economic uncertainty in the country, including the possible impact of bond notes.
The transaction was however depended upon the approval by central bank by April 7, and was later extended to May 19, but no response has been obtained from the RBZ.
The group which also have interest in Romania, said the deadline has now been extended again to 2 June although the delay was now frustrating.
“Final approval of the Assignment by RBZ remains outstanding, but 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. Whilst the approval of the Assignment remains outstanding, a formal extension to 2 June 2017 has been agreed by all parties,” said the group.
Vast chief executive Roy Pitchford said: “We remain extremely confident that the transaction with SSA will 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.”
Under the deal, Vast was also also to receive a $4 million loan payable in four years at 12 percent interest rate from the Mauritian investment company.
It intended to use the total $8 million raised to boast its operations in Romania and repay a Grayfox loan.
Grayfox Investments, a consortium of Zimbabwean investors owns the other 50 percent of the mine.