Shares in Vast Resources PLC (LON:VAST) soared after it stated in a letter to shareholders it did not expect to raise new equity this year.
The company said the recent strategic investment by the SSCG African Holdings, which pumped US$8mln into Vast, had “fundamentally changed the company”.
- Read Vast Resources gets cash injection
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The board believes Vast is now fully-funded through to positive cash flow at the Manaila and (subject to the relevant permissions being obtained) Baita Plai polymetallic mines.
“I know that further dilution has been a primary concern for many long-term holders, so I want to be clear when I say that the board's primary focus is on building a business which offers shareholders material value increases in the long-term through sustainable and organic growth,” said chairman Brian Moritz, as he announced a change to Vast’s shareholder communication programme.
In addition to its regulatory announcement responsibilities, Vast will continue to report operational activity by way of a quarterly production report, but it will publish production figures only and these will be issued to the market within four weeks of the end of the period.
Shareholders will get the chance to ask questions of the board in quarterly shareholder conference calls via an online chat facility.
New and existing shareholders will be invited to exclusive Vast Investor Evenings where members of the board will provide a presentation and be available to answer questions. The first of these evenings will be announced to the market shortly.
Shares in Vast were up by a fifth at 0.53p in mid-morning trading.