Update on asset backed debt finance and Placing to raise £4.8 million before costs

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

9 December 2020

Vast Resources plc

(“Vast” or the “Company”)

Update on asset backed debt finance
and Placing to raise £4,846,579.90 before costs

Vast Resources plc, the AIM-listed mining company, is pleased to announce that the previously announced detailed Term Sheet with the international banking institution (the “Bank”) has now been agreed between the Bank’s executive team and Vast, and submitted for the Bank’s final credit committee approval which is scheduled for 15 December 2020.

As one of the major conditions precedent to drawdown, the Company will be obliged to raise at least a further USD6.2 million of equity to be invested alongside the Bank and in contemplation of this requirement the Company has today raised £4,846,579.90 gross through a Placing of 3,671,651,439 ordinary shares of 0.1p in the Company (‘Ordinary Shares’) at a price of 0.132p per Ordinary Share (the ‘Placing Shares’).

The Placing was undertaken by the Company’s joint broker, Axis Capital Markets Ltd.

Andrew Prelea, Chief Executive Officer of the Company, comments:

“The asset backed debt facility is a key corporate and commercial objective for Vast, and one which I believe will prove beneficial for shareholders as we move into 2021.  This is clearly recognised by the new and existing investors who have participated in today’s placing and I believe that this development will provide Vast with the financial optionality to successfully capitalise on the anticipated ramp up to full production at our Baita Plai Polymetallic Mine.”

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 755,587,515 of the Placing Shares on or around 15 December 2020 (the ‘First Admission’) and that Admission will become effective and dealing will commence in respect of the issue of 2,916,063,924 of the Placing Shares on 23 December 2020 (the ‘Second Admission’).  The Placing is conditional on Admission.