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Issue of up to £0.5 million of Equity
Vast Resources, the AIM listed mining company with operations in Zimbabwe and Romania, has announced that, further to the announcement of 4 January 2016, certain directors, senior executives or consultants of the Company entered into a subscription agreement on 5 January 2016 according to which they will subscribe for new ordinary shares of 0.1p each in the Company, at a price of 0.8 pence per share, in order to raise £0.5 million and associated warrants. The Additional Financing is provided at the same Subscription Price and on the same warrant terms as Tranche 1 of the Financing announced on 4 January 2016 with Crede Capital.
Pursuant to the Additional Financing, 62,500,000 new Ordinary Shares were issued by the Company on 5 January 2016 at an issue price of 0.8 pence per new Ordinary Share being the closing bid price per Ordinary Share on the trading day immediately prior to the Investment Date of the Financing. The Company also announces that it has issued 62,500,000 warrants to acquire Ordinary Shares in the Company exercisable at 1.04 pence each at any time until 3 January 2021 to the Managers.
Application has been made to the London Stock Exchange plc for the 62,500,000 Managers’ Subscription Shares to be admitted to trading on the AIM market with admission expected to occur on 11 January 2016. The issued Managers’ Subscription Shares will rank pari passu in all respects with the existing Ordinary Shares.
Following Admission, the issued ordinary share capital of Vast will consist of 1,877,345,366 Ordinary Shares. There are no Ordinary Shares held in Treasury, therefore the total number of voting rights in the Company, following the issue of the 62,500,000 Managers’ Subscription Shares and the Subscription Shares pursuant to Tranche 1 of the Financing, is 1,877,345,366.
Related Party Transaction
The Additional Financing is defined as a Related Party Transaction under the AIM Rules for Companies. Accordingly, the Company’s independent director for the purpose of considering the Additional Financing, being Eric Diack, considers, having consulted with the Company’s nominated adviser, Strand Hanson Limited, that the terms of the Additional Financing are fair and reasonable insofar as the Company’s shareholders are concerned.
General Meeting
As referred to in the Company’s announcement of 4 January 2016, the Company will shortly seek to convene a General Meeting. At this General Meeting the Company will seek specific authority to issue such new Ordinary Shares as will be necessary to satisfy the warrants issued under the Additional Financing. Timing of the General Meeting and full details of the resolutions to be put to shareholders will be provided in a Notice of General Meeting (and associated Proxy Form) to be included in a circular to be sent to shareholders by 18 January 2016 (as referred to in the Company’s announcement of 4 January 2016).
