Vast Resources' shares rise on approval for $4m disposal

Shares in Vast Resources improved almost 7% after the Reserve Bank of Zimbabwe allowed the company to dispose of a non-controlling interest in its Pickstone-Peerless Gold Mine and Giant Gold Project in that country.

This meant it had formal approval of the assignment of 49.99% of its loan account with Canape, ensuring the $4m payment from SSCG Africa Holdings Ltd and its group could now be transferred to Vast.

"This will complete the $8m financing announced on 30 January 2017 principally to advance the company's core activities in Romania," the company said.

"I am delighted to report the formal approval from RBZ for our disposal of a non-controlling interest in our Pickstone-Peerless Gold Mine and Giant Gold Project in Zimbabwe," said chief executive Roy Pitchford.

"This transaction, together with the possible further transactions with Sinarom ... will provide us with the capital to move forward with our optimisation plans for our producing Manaila Polymetallic Mine and other interests in Romania," he said.

"We believe this area will yield the best long term value opportunity for the Company without the need to dilute our shareholders. Importantly, we have also retained the controlling interest in our Zimbabwean projects and have exposure to the upside which these may deliver through our ongoing 25% economic interest."

At 14:37 BST, shares in AIM-listed Vast were up 6.74% to 0.48p each.