Vast Resources plc Placing To Raise Gbp1,486,900 Before Costs
22 June 2020 - 4:00PM
UK Regulatory
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
22 June 2020
Vast Resources plc
("Vast" or the "Company")
Placing to raise GBP1,486,900 before costs
Vast Resources plc, the AIM-listed mining company, is pleased to
announce that it has raised an amount in aggregate of GBP1,486,900
before costs through a placing (the 'Placing') of 826,055,555 ordinary
shares of 0.1p in the Company ('Ordinary Shares') at a price of 0.18p
per Ordinary Share (the 'Placing Shares').
The Placing was undertaken by the Company's Joint Broker, Axis Capital
Markets Ltd. The Company has received interest from certain other
investors in participating for a further GBP109,800 on similar terms as
the Placing and will make a further announcement as and when such
arrangements are finalised.
The cash raised from the Placing together with further subscription
proceeds as referred to above will provide funds to cash settle the
liability to Atlas Capital Markets ('Atlas') at the end of July or
during August 2020, should Atlas decide to exercise its conversion
rights prior to the Company finalising the refinancing announced on 15
May 2020. At current share prices, the necessary sum to achieve this is
estimated by the Directors to be of the order of US$780,000 As
announced on 24 October 2019 under the Atlas Bond Issue Deed there is a
six months non-conversion period from the drawdown date (30 January
2020) after which Atlas may convert up to 10% of the par value of the
Bond each month.
In addition, the funds being raised will provide the Company with
funding for the first month's production at the Baita Plai Polymetallic
Mine until the first sale of concentrate expected in late August,
together with some further general working capital.
Andrew Prelea, CEO of Vast, commented:
"We are happy that the final stages of development at Baita Plai are
proceeding on time and as planned and expect that the funds raised today
will take us through to the anticipated date when we can achieve cash
flow through the sale of concentrate."
Admission of and dealings in the Placing Shares
Application has been made to AIM for the Placing Shares, which will rank
pari passu with existing Ordinary Shares, to be admitted to trading on
AIM ('Admission') in two tranches. It is expected that Admission will
become effective and dealing will commence in respect of the issue of
215,000,000 of the Placing Shares on or around 26 June 2020 (the 'First
Admission') and that Admission will become effective and dealing will
commence in respect of the issue of 611,055,555 of the Placing Shares on
6 July 2020 (the 'Second Admission'). The Placing is conditional on
Admission.
Following the First Admission, the total issued share capital of the
Company will be 11,527,660,643 and following the Second Admission this
will be 12,138,716,198. The above figures of 11,527,660,643 and
12,138,716,198 respectively may then be used by shareholders, following
the respective dates at which the Shares are issued, 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.vastplc.com or please contact:
Vast Resources plc www.vastplc.com
Andrew Prelea (Chief Executive Officer) +44 (0) 20 7846 0974
Andrew Hall
Beaumont Cornish - Financial & Nominated Adviser www.beaumontcornish.com
Roland Cornish +44 (0) 20 7628 3396
James Biddle
SP Angel Corporate Finance LLP -- Joint Broker www.spangel.co.uk
Richard Morrison +44 (0) 20 3470 0470
Caroline Rowe
Axis Capital Markets Limited -- Joint Broker www.axcap247.com
Richard Hutchison +44 (0) 20 3206 0320
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").
ABOUT VAST RESOURCES PLC
Vast Resources plc, is a United Kingdom AIM listed mining company with
mines and projects in Romania and Zimbabwe - focused on the rapid
advancement of high quality projects by recommencing production at
previously producing mines in Romania and the commencement of the joint
venture mining agreement on the Chiadzwa Community Concession Block of
the Chiadzwa Diamond Fields in Zimbabwe.
The Company's portfolio includes an 80% interest in the Baita Plai
Polymetallic Mine in Romania, where work is now currently underway
towards developing and recommissioning the mine and the Community
Concession Block in Chiadzwa, Zimbabwe.
Vast Resources owns the Manaila Polymetallic Mine in Romania, which was
commissioned in 2015, currently on care and maintenance.
(END) Dow Jones Newswires
June 22, 2020 02:00 ET (06:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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