Vast Resources (AIM:VAST) informed investors that it had received net cash proceeds of US$6,391m following the drawdown of its first tranche of a loan from Atlas Capital Markets.
The AIM-listed mining company said it had executed a tripartite intercreditor agreement (ICA) with Mercuria Energy Trading and Atlas as part of the transaction.
The ICA will mean Mercuria will agree to a standstill period for the duration of the Atlas facility, subject to terms and conditions, the statement outlined.
Maintaining its offtake agreements, Mercuria will receive a cash payment of $1m, whilst investment management firm, Sub-Sahara Goldia, will be fully repaid with $1m from the first tranche.
“We are pleased that Tranche 1 of the Atlas Capital Markets facility has been achieved and with the opportunity that this unlocks,” said Andrew Prelea, CEO of Vast Resources.
Shares in Vast Resources were trading 10.77% higher at 0.360p on Friday morning.
Meanwhile, Directors of Vast, including Prelea, have executed a share escrow agreement with an amount totalling to 143,140,500m shares as guarantees for certain company obligations under the bond issue deed together with the achievement of certain milestones, the statement outlined.
Prelea said Vast had “worked extremely hard” and that the company now had “a clear path to production” at Baita Plai Polymetallic Mine in Romania (BPPM).
Work is currently underway to develop and recommission BPPM, of which the company maintains a 80% interest in, as laid out in the group’s January interims.
The company outlined its objective to “unlock the underlying value” at its key assets which includes BPPM as well as the Chiadzwa Community Diamond Concession in Zimbabwe.
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