Vast Resources (AIM:VAST ) has today raised £1,486,900 before costs through a placing of 826,055,555 ordinary shares of 0.1p in the company at a price of 0.18p per ordinary share.
The AIM-listed mining company said it has received interest from other investors to participate for a further £109,800 on similar terms as the placing which will be announced when finalised.
The cash raised will provide funds to cash settle the pending liability to UK-based fund Atlas Capital Markets at the end of July or during August 2020, should Atlas decide to exercise its conversion rights prior to the company finalising the refinancing announced on 15 May 2020.
At current share prices, the group said the necessary sum to achieve this has been estimated by the Directors to be of the order of US$780,000.
Shares in Vast Resources opened flat at 0.212p on Monday morning.
Under the Atlas Bond Issue Deed announced in October 2019, there is a six months non-conversion period from the drawdown date of 30 January 2020 after which Atlas may convert up to 10% of the par value of the bond each month.
Meanwhile, the proceeds will also provide Vast with funding for the first month’s production at the Baita Plai Polymetallic Mine until the first sale of concentrate expected in late August, together with some further general working capital, this morning’s statement detailed.
“We are happy that the final stages of development at Baita Plai are proceeding on time and as planned and expect that the funds raised today will take us through to the anticipated date when we can achieve cash flow through the sale of concentrate,” said CEO, Andrew Prelea.
Follow News & Updates from Vast Resources here: