Vast Resources (AIM:VAST ) has raised in aggregate £901,416.66 before costs through a placing of 600,944,440 ordinary shares of 0.1p in the company at a price of 0.15p per share.
The AIM-listed mining company said the proceeds will fund the development costs for the drilling and metallurgical test work process at its Baita Plai Polymetallic Mine in Romania.
The placing was for 570,944,440 ordinary and was undertaken by the company’s joint broker, Axis Capital Markets Limited, this morning’s statement outlined.
The subscription was for a total of 30m ordinary shares, of which 23.3m were taken up by Andrew Prelea and 6.6m were taken up by Paul Fletcher - both Directors of the group.
Shares in Vast Resources closed at 0.165p on Friday afternoon.
Vast described itself last week as “extremely pleased” with better than expected initial indications from metallurgical test work conducted on ore samples taken from the Baita Plai mine.
On Friday, the group confirmed elevated gold and silver grades which it said would substantially increase the value of the saleable copper concentrate at the Baita Plai mine.
The group expects that an underground drilling programme which is currently underway will further confirm similar grades at depth.
"As a consequence of the recently released metallurgical test results, the Board and management felt that it was prudent to accelerate further test work and reports on the Baita Plai project to enhance its value for the refinancing opportunity,” said CEO, Andrew Prelea.
He said with newly commissioned reports, expanded drilling and accelerated test work, Vast’s intention is to provide long-term value by achieving a greater asset value to shareholders.
Follow News & Updates from Vast Resources here: