Vast Resources (AIM:VAST ) told investors that it has completed a placing to raise £4.8m ($6.45m) placing at 0.132p to satisfy expected requirements from the international banking institution.
will enable the group to ramp up to full production at its Baita Plai Polymetallic Mine.
The London-listed mining company previously announced the financing term sheet with an unnamed international banking institution continues to advance and the Term Sheet has now been agreed and submitted for the bank’s final credit committee approval meeting scheduled 15 December 2020.
Andrew Prelea, CEO of Vast said the facility is “a key corporate and commercial objective for Vast, and one which I believe will prove beneficial for shareholders as we move into 2021.”
He said this development “will provide Vast with the financial optionality to successfully capitalise on the anticipated ramp up to full production at our Baita Plai Polymetallic Mine.”
Shares in Vast Resources have traded within a tight range of 0.13p to 0.19p over the past month to open 16.92% lower this morning at 0.135p following the announcement.
Reasons to Follow Vast
Vast Resources is a United Kingdom AIM listed mining company with mines and projects in Romania and Zimbabwe. In Romania, the Company is focused on the rapid advancement of high-quality projects, particularly its wholly owned producing Baita Plai Polymetallic Mine.
The company previously reported the first commercial sale of concentrate produced at its Baita Plai Polymetallic Mine (‘Baita Plai’) in Romania last month. Vast confirmed at the time that this first delivery of concentrate has been completed ‘in accordance with expectations.’
The mine has a JORC compliant Reserve & Resource Report which underpins the initial mine production life of approximately 3-4 years with an in-situ total mineral resource of 15,695 tonnes copper equivalent with a further 1.8M–3M tonnes exploration target.
The company recently enlarged its exploration target at the Baita Plai Polymetallic Mine to between 3.2m–5.8m tonnes following the group’s analysis of further historical drilling data.
Elsewhere, Vast has been granted the Manaila Carlibaba Extended Exploitation License that will allow it to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.
In Zimbabwe, Vast is focused on the commencement of the joint venture mining agreement on the Chiadzwa Community Concession Block of the Chiadzwa Diamond Fields.
Multiple Re-Rating Catalysts
Vast is on track to surpass its initial copper concentrate sales delivery targets and expects delivery of between 350-400 tonnes of copper concentrate to commodity group Mercuria.
Production of Cu concentrate in October was estimated to be more than 50% of the total FY20 target with first deliveries to Mercuria expected imminently.
Vast expects to complete its asset-backed debt-financing for Baita Plai in December 2020 following its agreement with an unnamed international banking institution earlier this year.
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