Placing to raise £1,486,900 before costs

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

22 June 2020
Vast Resources plc
(“Vast” or the “Company”)

Placing to raise £1,486,900 before costs

Vast Resources plc, the AIM-listed mining company, is pleased to announce that it has raised an amount in aggregate of £1,486,900 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 £109,800 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.