Vast Resources to shine with Botswana mine diamond deal

A London-listed mining company is polishing off a deal to buy an African diamond mine in Botswana.

Vast Resources is poised to seize control of Gem Diamonds Botswana – an arm of Gem Diamonds that owns the Ghaghoo diamond mine.

The Aim-listed firm is planning to raise the money needed to complete the deal through “third-party financiers” rather than tapping investors for funds.

Andrew Prelea, the chief executive of Vast Resources, said the mine was a “highly compelling opportunity” that would “deliver diamond production in a relatively short period”.

He added that the mine has $250m (£183m) worth of investment and infrastructure, which was capable of delivering “quality gems” spanning “large stones and fancy colours”.

The deal is hinged upon Vast securing a bank guaran- tee alongside regulatory and competition approval in Bot- swana. It is poised to com- plete later this year.

Vast has projects across Romania and Zimbabwe.

The Ghaghoo mine was discovered in 1982 by Falcon- bridge Mining and evaluated as part of a joint venture with the diamond giant De Beers.

Gem Diamonds snapped up the site in May 2007.

Gem Diamonds Botswana has an agreement in place to pay a 10pc royalty to the Government of Botswana on all diamonds produced and sold from the site.

The investment comes after Vast raised £1.8m from a share issue earlier this month to restructure its debt.