Vast Resources PLC (LSE:VAST, FRA:D9A) rose 59% to 4.76p in early London trade on Wednesday following the completion of its reverse takeover of Gulf International Minerals and the re-admission of its enlarged share capital to AIM.
The transaction hands the mining and resource development company a 49% beneficial interest in the Aprelevka Joint Venture in northern Tajikistan.
The asset holds four operational mining licences along the Tien Shan Gold Belt, currently producing approximately 11,000 ounces of gold and 130,000 ounces of silver per annum from mined ore and tailings.
Dealings in the company's ordinary shares resumed at 8:00 a.m. following shareholder approval at a general meeting on Tuesday.
To complete the transaction, the group issued 1,319,678,705 consideration shares at an issue price of 6.25 pence each to Bay Square Pacific and the seller shareholders, representing approximately 80.23% of the enlarged ordinary share capital.
Alongside the acquisition, the company completed a capital consolidation, converting every 25 existing shares of 0.1 pence into one new share of 2.5 pence.
The company completed a placing and subscription that raised approximately £7.5 million, alongside a separate oversubscribed retail offer that raised £300,000.
The group noted it has also received interest from certain investors who had been unable to participate within the original timetable, seeking to subscribe for a further £500,000 of new equity on identical terms in the coming days.
Net equity proceeds, combined with a newly secured US$10 million debt facility, will be directed towards settling outstanding creditor loans, funding general working capital, and advancing the Aprelevka asset.
Under the terms of the credit agreement, US$4 million of the debt facility is strictly ring-fenced for project expansion at the Tajikistan operation.
The financial restructuring will be used, among other purposes, to fund the settlement of creditor and loan arrangements, including those with Alpha and Mercuria.
The company also announced the start of an exploratory drilling campaign in Tajikistan to establish a maiden JORC-compliant mineral resource estimate across the Soviet Tailings Facilities.
Following admission, the total enlarged issued share capital of the group consists of 1,645,941,556 ordinary shares with full voting rights.
