Vast Resources plc Subscription To Raise Gbp900,000 Before Costs

 
TIDMVAST 
 
 
   Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
   30 May 2019 
 
   Vast Resources plc 
 
   ("Vast" or the "Company") 
 
   Subscription to raise GBP900,000 before costs 
 
   Vast Resources plc, the AIM-listed mining company, is pleased to 
announce that it has raised in aggregate GBP900,000 before costs through 
a placing (the "Placing") of 775,862,068 ordinary shares of 0.1p in the 
Company (Ordinary Shares) at a price of 0.116p per Ordinary Share (the 
"Placing Shares").  The Placing was undertaken by SVS Securities plc, 
joint broker to the Company. 
 
   The Placing Shares were issued under existing authorities available to 
the Board relating to the Baita Plai Polymetallic Mine ("Baita Plai") 
and for general corporate purposes. The cash raised from the Placing has 
been calculated to be sufficient to meet all the Company's financing 
needs in connection with its activities in Romania and general working 
capital until drawdown of the Loan Finance, as defined below. 
 
   As announced on 29 April 2019, the Company has received a draft term 
sheet containing the material indicative terms from a Swiss bank for a 
loan finance of up to US$10 million. This is to be applied in connection 
with the Company's Romanian projects including full repayment of the 
US$4 million plus accrued interest by the Company to Mercuria.  While 
due diligence on the provision of the Swiss bank loan finance and/or any 
equivalent (the "Loan Finance") progresses, the Company plans to incur 
some of the necessary pre-production expenditure for Baita Plai in 
advance of the receipt of the Loan Finance.  This will significantly 
reduce the lead time up to commencement of production. 
 
   The pre-production expenditure will include the commencement of the 
installation of a seven-kilometre tailings pipe to the tailings dam and, 
as is required in the Company's licence, the installation of a new and 
independent electricity supply at Baita Plai in addition to the supply 
the Company has already installed. Expenditure will also include the 
cost of the independent report from SRK Consulting (UK) Ltd as mentioned 
in the Company's announcement of 28 May 2019. The money raised from the 
Placing will be applied for these purposes plus for general expenses at 
Baita Plai and for general corporate purposes. 
 
   Admission of and Dealings in the Placing and Subscription Shares 
 
   The issue of the Placing Shares is conditional on their admission to 
trading on AIM ("Admission").  Application is being made for the Placing 
Shares to be admitted to trading on AIM and it is expected that 
Admission will become effective and dealing in the Placing Shares will 
commence on or around 4 June 2019.  The Placing Shares will rank pari 
passu with existing Ordinary Shares. 
 
   Following Admission, the total issued share capital of the Company will 
be 8,721,033,379.  The above figure of 8,721,033,379 may be used by 
shareholders 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.vastresourcesplc.com or please 
contact: 
 
 
 
 
Vast Resources plc                                www.vastresourcesplc.com 
 Andrew Prelea (Chief Executive Officer)           [phone] 
Beaumont Cornish - Financial & Nominated Adviser  www.beaumontcornish.com 
 Roland Cornish                                    [phone] 
 James Biddle 
SVS Securities Plc -- Joint Broker                www.svssecurities.com 
 Tom Curran                                        [phone] 
 Ben Tadd 
SP Angel Corporate Finance LLP -- Joint Broker    www.spangel.co.uk 
 Richard Morrison                                  [phone] 
 Caroline Rowe 
Blytheweigh                                       www.blytheweigh.com 
 Tim Blythe                                        [phone] 
 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"). 
 
   Notes 
 
   Vast Resources plc, is an AIM listed mining company with mines in 
Romania and Zimbabwe focused on the rapid advancement of high quality 
brownfield projects by recommencing production at previously producing 
mines in Romania and finalising its Chiadzwa Community Development Trust 
joint venture on the Heritage Concession (Block T1A of the Marange 
Diamond Fields) in Zimbabwe. 
 
   The Company's portfolio includes an 80% interest in the Baita Plai 
Polymetallic Mine in Romania, where work is currently underway towards 
developing and recommissioning the mine on completion of funding. 
 
   Vast Resources owns the Manaila Polymetallic Mine in Romania, which was 
commissioned in 2015, currently on care and maintenance, and is focused 
on its expansion through the development of a second open pit operation 
and new metallurgical complex at the Carlibaba Extension Area. 
 
 
 
 
 
 

(END) Dow Jones Newswires

May 30, 2019 02:00 ET (06:00 GMT)

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