UK: Vast Resources stock sinks 24% over Zim diamonds deadlock

By Business Reporter

ENGLAND: Shares in UK-based Vast Resources fell 24% after the company said that it hasn’t been able to progress the release of diamonds held in custody at the Reserve Bank of Zimbabwe (RBZ).

The company cited Zimbabwe’s recent disputed elections for the lack of progress in the long running saga.

It’s shares were consequently down  0.06 pence at 0.19 pence.

In a statement Monday, Vast it remains confident of finalising the process to release the historic parcel of 129,400 carats of rough diamonds, and that it will report further progress.

Vast Resources began formal legal action back in December 2022 in the High Court of Zimbabwe to progress the release of the parcel.

In February, the company received a signed and stamped order from the High Court of Zimbabwe relating to the release of the diamonds.

Company CEO, Andrew Prelea, flew into Harare in May but failed to return with the gems.

Speaking ahead of his travel, “Despite taking longer than anticipated, I am very pleased to announce that after many years of hard work and discussion with the Zimbabwean Government the matter regarding the release of the historic parcel has now been amicably settled in a manner supported by an Order of the High Court of Zimbabwe.”

Vast surrendered gems from the country’s Marange diamond fields amid claims it had exploited them on claims previously owned by De Beers.

The gems have been held in the custody of the RBZ since 2010, pending the determination of an appeal against the High Court’s decision in 2009.

Vast resources began formal legal action in the High Court of Zimbabwe in December 2022 which came to finality earlier this year after production of a court order bringing the matter to a close.