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Progress on asset backed debt financing, placing to raise £1,751,200 & Baita Plai update

Vast Resources PLC
·6-min read

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

26 October 2020

Vast Resources plc
(‘Vast’ or the ‘Company’)

Progress on asset backed debt financing and Placing to raise £1,751,200 before costs

Baita Plai Update

Vast Resources plc, the AIM-listed production and development company, is pleased to update the market on recent operational and financing progress.

Overview

  • £1,751,200 (gross) Placing at 0.16p per share to provide additional working capital following recent cash settlement of Conversion Notice and funding through to payment in full from first copper sales to Mercuria.

  • Port delivery early November 2020 of 350-400 tonnes of copper concentrate from Baita Plai Polymetallic Mine (‘Baita Plai’) in Romania, being the October sales delivery targets referred to in the announcement of 22 October 2020.

  • JORC Reserve & Resource report for Baita Plai remains expected by the end of this week

  • Further progress with asset backed debt financing:

    • Independent technical consultants site visit to Baita Plai has been completed and independent environmental consultants have confirmed to undertake site visit at Baita Plai on Monday 26 October 2020.

    • Binding Term Sheet with international banking institution (“ the Bank”) targeted to be signed by the end of November 2020 with final approvals in December 2020.


Baita Plai Polymetallic Mine
Following the previous announcement made on 22 October 2020 regarding the October copper concentrate production and sales target at Baita Plai, the Company would like to confirm that it is expecting the first port delivery of 350-400 tonnes of copper concentrate to Mercuria will take place in early November 2020.

Following the previous announcement made on 12 October 2020 regarding progress on asset backed debt finacing linked to Baita Plai, the Company can confirm that the independent technical consultants have completed the required site visit and the independent environmental consultants have confirmed to undertake site visit at Baita Plai on Monday 26 October 2020. The Company is engaged directly with the independent consultants in order to finalise the due diligence process. The Company and the international banking institution are still targeting the finalisation of a Binding Term Sheet by the end of November 2020 with final approvals targeted in December 2020.

JORC Reserve & Resource Report

In accordance with the previous announcement made on 7 September 2020 regarding the JORC Reserve & Resource report, the Company expects that this report be released this week.

The report is being compiled by Craig Harvey, the Chief Operating Officer for Vast and a full-time employee and Director of the Company. Mr Harvey is a Competent Person who is a Member of the Australian Institute of Geoscientists and of the Geological Society of South Africa, a Recognised Professional Organisation included in a list that is posted on the ASX website from time to time.

Mr Harvey has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Placing

The Company has raised in aggregate £1,751,200 before costs through a placing (the ‘Placing’) of 1,094,500,000 ordinary shares of 0.1p in the Company (‘Ordinary Shares’) at a price of 0.16p per Ordinary Share (the ‘Placing Shares’).

The Placing was undertaken by the Company’s Joint Broker, Axis Capital Markets Ltd. The cash raised from the Placing will be partly used to replenish its working capital on account of cash settling the conversion notice issued by Atlas Special Opportunities LLC (‘Atlas’) announced by the Company on 6 October 2020. The cash raised will also ensure that the Company has sufficient funding available to cover the period of time until it receives payment in full from the first sale of copper concentrate to Mercuria. The cash raised from the Placing will also provide funds to give the Company the option to cash settle a conversion notice, up to the settlement value of $780,000, should Atlas further exercise their conversion rights prior to the Company finalising the refinancing with the international banking institution. The Company will also utilise the cash raised from the Placing to cover additional anticipated costs in relation to the refinancing process with the international banking institution and to cover contingencies.

Admission of and dealings in the Placing Shares

Application has been made to AIM for the Placing Shares, which will rank pari passu with existing Ordinary Shares, to be admitted to trading on AIM (‘Admission’) in two tranches. It is expected that Admission will become effective and dealing will commence in respect of the issue of 189,375,000 of the Placing Shares on or around 30 October 2020 (the ‘First Admission’) and that Admission will become effective and dealing will commence in respect of the issue of 905,125,000 of the Placing Shares on or around 9 November 2020 (the ‘Second Admission’). The Placing is conditional on Admission.

Following the First Admission, the total issued share capital of the Company will be 13,549,444,200 and following the Second Admission this will be 14,454,569,200. The above figures of 13,549,444,200 and 14,454,569,200 respectively may then be used by shareholders, following the respective dates at which the Shares are issued, as the denominator for the calculations by which they will determine if they are required to notify their interest in Vast under the FCA's Disclosure and Transparency Rule.

**ENDS**

For further information, visit www.vastplc.com, follow the Company on Twitter @vast_resources and LinkedIn, or please contact:

Vast Resources plc
Andrew Prelea (Chief Executive Officer)
Andrew Hall

www.vastplc.com
+44 (0) 20 7846 0974

Beaumont Cornish - Financial & Nominated Adviser
Roland Cornish
James Biddle

www.beaumontcornish.com
+44 (0) 020 7628 3396

SP Angel Corporate Finance LLP – Joint Broker
Richard Morrison
Caroline Rowe

www.spangel.co.uk
+44 (0) 20 3470 0470

Axis Capital Markets Limited – Joint Broker
Richard Hutchison

www.axcap247.com
+44 (0) 20 3206 0320

St Brides Partners Limted
Susie Geliher
Charlotte Page

www.stbridespartners.co.uk
+44 (0) 20 7236 1177

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).

ABOUT VAST RESOURCES PLC

Vast Resources plc, is a United Kingdom AIM listed production and development company with mines and projects in Romania and Zimbabwe.

In Romania, the Company is focused on the rapid advancement of high quality projects by recommencing production at previously producing mines.

The Company’s Romanian portfolio includes an 80% interest in the Baita Plai Polymetallic Mine. Baita Plai is located in the Apuseni Mountains, Transylvania, an area which hosts Romania’s largest polymetallic mines. Work is now currently underway towards the first sale of copper concentrate as well as efforts in place to establish a maiden Reserve & Resource Report under the JORC code.

The Company also owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance. The Company has been granted the Manaila Carlibaba Extended Exploitation License that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.

In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Chiadzwa Community Concession Block of the Chiadzwa Diamond Fields in Zimbabwe.