Vast Resources plc Subscription To Raise Gbp900,000 Before Costs
May 30 2019 - 2:00AM
UK Regulatory
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
30 May 2019
Vast Resources plc
("Vast" or the "Company")
Subscription to raise GBP900,000 before costs
Vast Resources plc, the AIM-listed mining company, is pleased to
announce that it has raised in aggregate GBP900,000 before costs through
a placing (the "Placing") of 775,862,068 ordinary shares of 0.1p in the
Company (Ordinary Shares) at a price of 0.116p per Ordinary Share (the
"Placing Shares"). The Placing was undertaken by SVS Securities plc,
joint broker to the Company.
The Placing Shares were issued under existing authorities available to
the Board relating to the Baita Plai Polymetallic Mine ("Baita Plai")
and for general corporate purposes. The cash raised from the Placing has
been calculated to be sufficient to meet all the Company's financing
needs in connection with its activities in Romania and general working
capital until drawdown of the Loan Finance, as defined below.
As announced on 29 April 2019, the Company has received a draft term
sheet containing the material indicative terms from a Swiss bank for a
loan finance of up to US$10 million. This is to be applied in connection
with the Company's Romanian projects including full repayment of the
US$4 million plus accrued interest by the Company to Mercuria. While
due diligence on the provision of the Swiss bank loan finance and/or any
equivalent (the "Loan Finance") progresses, the Company plans to incur
some of the necessary pre-production expenditure for Baita Plai in
advance of the receipt of the Loan Finance. This will significantly
reduce the lead time up to commencement of production.
The pre-production expenditure will include the commencement of the
installation of a seven-kilometre tailings pipe to the tailings dam and,
as is required in the Company's licence, the installation of a new and
independent electricity supply at Baita Plai in addition to the supply
the Company has already installed. Expenditure will also include the
cost of the independent report from SRK Consulting (UK) Ltd as mentioned
in the Company's announcement of 28 May 2019. The money raised from the
Placing will be applied for these purposes plus for general expenses at
Baita Plai and for general corporate purposes.
Admission of and Dealings in the Placing and Subscription Shares
The issue of the Placing Shares is conditional on their admission to
trading on AIM ("Admission"). Application is being made for the Placing
Shares to be admitted to trading on AIM and it is expected that
Admission will become effective and dealing in the Placing Shares will
commence on or around 4 June 2019. The Placing Shares will rank pari
passu with existing Ordinary Shares.
Following Admission, the total issued share capital of the Company will
be 8,721,033,379. The above figure of 8,721,033,379 may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in Vast under
the FCA's Disclosure and Transparency Rule.
**ENDS**
For further information, visit www.vastresourcesplc.com or please
contact:
Vast Resources plc www.vastresourcesplc.com
Andrew Prelea (Chief Executive Officer) +44 (0) 20 7236 1177
Beaumont Cornish - Financial & Nominated Adviser www.beaumontcornish.com
Roland Cornish +44 (0) 020 7628 3396
James Biddle
SVS Securities Plc -- Joint Broker www.svssecurities.com
Tom Curran +44 (0) 20 3700 0100
Ben Tadd
SP Angel Corporate Finance LLP -- Joint Broker www.spangel.co.uk
Richard Morrison +44 (0) 20 3470 0470
Caroline Rowe
Blytheweigh www.blytheweigh.com
Tim Blythe +44 (0) 20 7138 3204
Megan Ray
The information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 ("MAR").
Notes
Vast Resources plc, is an AIM listed mining company with mines in
Romania and Zimbabwe focused on the rapid advancement of high quality
brownfield projects by recommencing production at previously producing
mines in Romania and finalising its Chiadzwa Community Development Trust
joint venture on the Heritage Concession (Block T1A of the Marange
Diamond Fields) in Zimbabwe.
The Company's portfolio includes an 80% interest in the Baita Plai
Polymetallic Mine in Romania, where work is currently underway towards
developing and recommissioning the mine on completion of funding.
Vast Resources owns the Manaila Polymetallic Mine in Romania, which was
commissioned in 2015, currently on care and maintenance, and is focused
on its expansion through the development of a second open pit operation
and new metallurgical complex at the Carlibaba Extension Area.
(END) Dow Jones Newswires
May 30, 2019 02:00 ET (06:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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