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Vast raises fresh capital

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AIM-listed Vast Resources, which has operations in Zimbabwe and Romania, has raised £4,8 million through a placing of almost 400 million ordinary shares of 0,1p at a price of 0,132p.

BY MTHANDAZO NYONI

In a statement, the company revealed that the previously announced detailed term sheet with an international bank had been agreed between the bank’s executive team and Vast Resources.

The company said the term sheet had been submitted to the bank’s credit committee for approval.

On Wednesday, Vast said it had “raised £4 846 579 90 gross through a placing of 3 671 651 439 ordinary shares of 0,1p in the company at a price of 0,132p per ordinary share.”

The placing was undertaken by the company’s joint broker, Axis Capital Markets Ltd.

Andrew Prelea, chief executive officer of Vast said the asset-backed debt facility was a key corporate and commercial objective for the firm.

He said he believed it would prove beneficial for shareholders as they moved into 2021.

“This is clearly recognised by the new and existing investors who have participated in today’s placing and I believe that 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,” he said.

Last year, Vast signed a joint venture with a community-owned company ahead of the signing, in October, of an agreement with the Zimbabwe Consolidated Diamond Company to start mining at Chiadzwa.

A joint venture agreement was reached with Chiadzwa Mineral Resources, a company designated to represent the Chiadzwa community interests in the diamond concession. The new venture was named Katanga Mining.

Prelea said at the time: “This is the beginning of an exciting era in Zimbabwe, and working together with government and the community has been a great pleasure. Being a part of this landmark project is of great significance to all the stakeholders, being a first of its kind where the community will have a direct benefit from the natural resources in their community.

“Given the complexities of the matters that have had to be taken into consideration, we are very happy with the results to date. I would like to thank the company’s team on the ground in Zimbabwe as well as the government of Zimbabwe for all the guidance and support that they have given in the whole project,” he said.

Vast has sold its gold interests in Pickstone and Eureka mines to Padenga Holdings to focus on the diamond project.

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