Vast Resources begins formal legal action
VAST Resources has begun formal legal proceedings at the High Court for the release of its historic parcel of 129 400 carats of rough diamonds held in safe custody by the Reserve Bank of Zimbabwe.
The AIM-listed mining concern is already operating in Zimbabwe through 95 percent-owned Eureka Gold Mine in Mashonaland Central province.
Few years ago, Vast Resources was reported to have concluded an agreement with Red Mercury, an investment vehicle owned by Marange Zimunya Community Share Ownership Trust, to exploit diamonds in Chiadzwa area believed to have great potential for significant new discoveries of alluvial and conglomerate.
Chiadzwa is Zimbabwe’s most known diamond field where nine private investors in partnership with the Zimbabwe Mining Development Corporation (ZMDC), operated since 2010 before the Government terminated the joint ventures in 2015.
The Government said the firms had failed to renew the mining grants and established the Zimbabwe Consolidated Diamond Company (ZCDC) to take control of the diamond claims.
In a statement this week, the company said settlement discussions regarding the historic diamond claims in Zimbabwe have been ongoing for some time.
“Discussions relating to the release of an historic parcel of 129 400 carats of rough diamonds held in safe custody at the Reserve Bank of Zimbabwe, pursuant to a direction from the Supreme Court of Zimbabwe as announced by the company on February 18, 2010, as required, for the purposes of their completion, that legacy issues be finalised in the High Court of Zimbabwe,” it said.
The intention of the parties was, as part of the settlement process, to agree for a transparent legal framework to progress and allow the release of the historic parcel held, pursuant to the January 2010 order of the Supreme Court in the custody of the Reserve Bank of Zimbabwe pending determination of an appeal against the High Court Judgement of September 2009.
“To this end, and in order to dispose of the legacy issues that could undermine the integrity of settlement discussions, the company commenced formal legal action in the High Court of Zimbabwe in December 2022.
“The board has been advised by its legal counsel and is encouraged that material progress on the outcome of this legal action can be made during the course of January 2023 and it will provide further updates to the market regarding the status of this process.”
Vast said it recognises that there is no certainty of settlement until the court matter is finalised.
It said the final quality assortment of the historic parcel will be determined when the stones are in its possession and can be independently cleaned and valued.
“Upon this matter being finalised the company can refocus its attention back to other opportunities in Zimbabwe as previously announced,” said Vast Resources.
In 2018, Vast Resources Zimbabwe announced that it was exploring new mining opportunities and intended to revitalise its historic claims as the firm sought to increase its footprint in the country, leveraging on the improved investment climate following the coming into power of the new dispensation.-ebusinessweekly
