Vast Resources raises £1.7m through share placing

7th Jul 2023 13:13

(Sharecast News) - Vast Resources has successfully completed a placing to raise £1.7m in gross proceeds, it announced on Friday.

The AIM-traded firm said the placing involved the issue of 486 million ordinary shares at a price of 0.35p each.

It said the primary purpose of the placing was to provide Vast with working capital to meet its existing corporate obligations, both in Romania and at the corporate level.

The funds would also be used to cover unforeseen operational costs, further expansion capital expenses, ongoing drilling programs, and mine development costs at the Baita Plai Polymetallic Mine in Romania.

In addition to the operational requirements, the funds raised would also support the recovery of a historic parcel currently held in the Reserve Bank of Zimbabwe.

Vast Resources had been in discussions with relevant organisations regarding the procedures for the handover of the parcel, and the placing was deemed necessary to ensure the firm's liquidity during the process.

Further updates on this matter would be provided to the market in due course, the board explained.

Additionally, Vast Resources said it had been engaged in continued discussions with Mercuria Energy Trading and Alpha Investments regarding an extension on the repayment of a debt totalling $8.4m.

The debt was originally due for full repayment on 30 June.

Once the discussions were successfully concluded, the company said it would announce a formalised extension agreement.

"The company will be updating the market regarding the second quarter production report in the coming weeks, and drilling results achieved to date from the drilling programme," the Vast board said in its statement.

"The company can however report that operational breakeven has been achieved in June 2023 and that name plate capacity is now anticipated to be met in the third quarter, rather than the first half, of 2023."

At 1247 BST, shares in Vast Resources were down 6.74% at 0.38p.

Reporting by Josh White for Sharecast.com.