Vast Resources (VAST) has raised £2 million by way of a placing of just over 1.1 million shares at 0.18p each.
The money raised will be used for three principal purposes.
First, repayment of US$1 million of debt owed to Alpha and Mercuria in order to secure an extension of their loans, and so enable the company to receive diamond proceeds to extinguish their and other outstanding debts.
Second, to continue the operational and technical due diligence prior to resuming operations at Baita Plai mine and reopening Manaila mine, both in Romania. This work is part of the ongoing review of the company’s asset base and will involve completing new offtake finance arrangements and/or agreements with new joint venture partners.
Thirdly, to boost Vast’s cash position prior to the finalisation of the annual accounts while it awaits proceeds from the sale of the historic parcel of diamonds from Zimbabwe, due after the 17 November tender.
View from Vox
Vast’s upcoming diamond tender is likely to realise significant sums, and it’s good to see the company getting its house in order ahead of that. There’s a lot to be said for Vast’s broad portfolio of assets, especially in a revitalised mining market, and it will be interesting to see how the review of this asset base works out. In the meantime, moves towards resuming operations at Baita Plai and Manaila are welcome.