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Share Name Share Symbol Market Type Share ISIN Share Description
Vast Resources PLC LSE:VAST London Ordinary Share GB00B142P698 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 0.16p 0.15p 0.17p 0.16p 0.16p 0.16p 3,469,981 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 21.9 -8.3 -0.3 - 12.00

Vast Resources plc Financing Update

12/02/2019 1:12pm

UK Regulatory (RNS & others)


 
TIDMVAST 
 
 
   Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
   12 February 2019 
 
   Vast Resources plc 
 
   ("Vast" or the "Company") 
 
   Financing Update 
 
   Vast Resources plc, the AIM listed mining company with operating mines 
in Romania and Zimbabwe, wishes to update the market on its financing 
following the announcement of 18 January 2019 that the Tranche B offtake 
finance from Mercuria Energy Trading SA (Mercuria) did not proceed. 
Tranche A remains in place in accordance with its terms as subsequently 
confirmed by Mercuria. 
 
   The Company remains in discussions with potential investors in two 
areas: 
 
 
   -- discussions continue for replacement offtake finance principally to bring 
      Baita Plai into production and also to provide other working capital for 
      the Group. The Company anticipates that these arrangements would be 
      likely to have a similar structure to those previously contemplated for 
      Tranche B finance with Mercuria.  In addition to replacing Tranche B the 
      discussions also include the possibility of replacing Tranche A. 
 
   -- the Company is advancing discussions with a potential "cornerstone" 
      investor to cover the expenditure required to bring the proposed Zimbabwe 
      diamond project into production as well as providing a possible 
      alternative to new off-take finance as mentioned above.  The Marange -- 
      Zimunya Community Trust (owner of Red Mercury with which the Company has 
      a joint venture agreement) is consistently informing Vast that it is 
      expecting to receive at any time updated documentation from the 
      Zimbabwean Ministry confirming the right to mine. 
 
 
   It should be stressed that all these finance discussions remain at the 
diligence stage and are dependent upon the signing and completion of 
legal agreements in the normal course of business.  In addition, whilst 
Vast expects that the documentation concerning the right to mine will be 
forthcoming as stated above this and/or the terms on which mining can be 
carried out cannot be guaranteed with certainty. 
 
   As a result of the agreement of the Mercuria offtake finance term sheet 
announced on 25 January 2018 the Company agreed accelerated repayments 
of the loan from Sub Sahara Goldia Investments (SSGI) (originally not 
repayable until 2021) in order that security held by SSGI over Romanian 
assets could be released in favour of Mercuria.  These repayments were 
expected to have "dovetailed" into the expected finance from Mercuria. 
Without Tranche B, the Company has not been able to make the payments 
due to SSGI in December 2018 and January 2019.  The Company is in 
discussions with SSGI concerning an alternative repayment proposal and 
these discussions are ongoing. 
 
   The Company also announces that Bergen Global Opportunities Fund LP 
(Bergen) have elected under the terms of their agreement to pause the 
funding of Tranche 2 pursuant to the US$3,000,000 bridge facility 
announced on 20 December 2018 for at least 60 days as a result of the 
Company's share price having been less than 0,2p for a two day period 
during the period prior to today. 
 
   **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 
Brandon Hill Capital Ltd -- Joint Broker          www.brandonhillcapital.com 
 Jonathan Evans                                    +44 (0) 20 3463 5016 
SVS Securities Plc -- Joint Broker                www.svssecurities.com 
 Tom Curran                                        +44 (0) 20 3700 0100 
 Ben Tadd 
 
  St Brides Partners Ltd                            www.stbridespartners.co.uk 
  Susie Geliher                                     +44 (0) 20 7236 1177 
  Juliet Earl 
 
 
   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 and resource development 
company focussed on the rapid advancement of high-quality brownfield 
projects and recommencing production at previously producing mines in 
Romania and Zimbabwe. 
 
   Vast Resources currently owns and operates the Manaila Polymetallic Mine 
in Romania, which was commissioned in 2015, and is focussed on its 
expansion through the development of a second open pit operation and new 
metallurgical complex at the Carlibaba Extension Area.  The Company's 
Romanian portfolio also includes interests in two brownfield development 
projects; the Baita Plai Polymetallic Mine (80% interest), which has a 
reported 1,800,000-tonne 
copper-silver-zinc-lead-gold-tungsten-molybdenum ore body at 6% copper 
equivalent (Russian Reserves and Resources Reporting System) within the 
mining licence area; and the Blueberry Project (29.41% interest), a 
7.285km(2) brownfield area of prospectivity in the Golden Quadrilateral 
of Romania located in the immediate vicinity of the now closed Baia de 
Aries mine. 
 
   The Company also has interests in a number of projects in Zimbabwe 
including a controlling 25 per cent. interest in the producing 
Pickstone-Peerless Gold Mine, a 23.75% economic interest in the Eureka 
Gold Mine, and an 86.67% interest in a SPV which has a due diligence 
access agreement and pre-agreed joint venture terms on a diamond 
concession within the Marange Diamond Fields, widely considered to be 
one of the richest sources of alluvial diamonds globally. 
 
 
 
 

(END) Dow Jones Newswires

February 12, 2019 08:12 ET (13:12 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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