Vast Resources raises £1.82m to fund working capital

6th Oct 2023 13:00

(Sharecast News) - Mining firm Vast Resources announced it had successfully raised £1.82m on Friday to fund its working capital and to meet its obligations in Romania.

The AIM-traded company said the funds were raised by placing 933,000,000 shares at 0.195p each.

It said the net proceeds were earmarked for working capital and to meet its current corporate obligations in its native operations and internationally.

A particular focus would be on the Baita Plai Polymetallic Mine in Romania, where the funds would cover unforeseen operational costs stemming from recent protest actions and facilitate further expansion and capital costs, supporting the ongoing drilling programme and mine development initiatives.

Baita Plai had officially started commercial production of lead and zinc concentrate, with drilling persisting substantially to facilitate the company's aims of extending the licence in 2024 and enlarging the resource.

Underground development was also progressing, as the latest drill results spotlighted mineral-rich areas in previously unexplored locations, which were not part of the initial mine plan.

An update concerning third-quarter production was set to be released in the coming weeks, providing more insight into the company's operational standing.

Looking at its operations in Tajikistan, Vast said the first commercial shipment of lead and zinc concentrate to Trafigura was slated for completion this week.

Additional shipments were currently in the planning stage.

"Based on current strategy and updated expectations the company does not believe it will need to raise further equity funding for the foreseeable future," the board stated.

At 1235 BST, shares in Vast Resources were down 15.59% at 0.21p.

Reporting by Josh White for Sharecast.com.