Vast Resources (LON:VAST) shares surged over 21% as it unveiled a financing deal with investor Crede to raise up to £5mln to further development in Romania.
The investment is being done in four tranches equal to £1.25mln - the first of which is being issued today, with around 156mln subscription shares issued to Crede at 0.8p each alongside the issue of the same amount of warrants.
The subscription for the second, third, and fourth tranches is conditional on an investment of £500,000 from the directors and senior executives of Vast.
Vast chief executive Roy Pitchford said: "Securing a long term, cornerstone investor has been a requirement of the company since its transition from a junior explorer to a mine operating company.
"The funding from Crede Capital will facilitate increasing production at Manaila, the potential increase in open cut ore resources, the re-commissioning of Baita Plai and its eventual expansion, and funding for new projects.
"The development of Manaila and Baita Plai to their respective full capacity will provide Vast with a strong foundation in Romania and enable the company to exploit additional mining opportunities that have already been identified.
"In welcoming Crede Capital to the Vast share register, it is hoped that there will be further investment opportunities available to Crede and existing shareholders as Vast endeavours to build its mining operations in Romania."
At the end of last year, the miner confirmed Romania was the main focus for Vast for the foreseeable future, where it has the producing Manaila polymetallic mine and the Baita Plai mine, where it aims to restart mining early in 2016.
The firm said it aims to convert resources at Baita Plai to JORC standard and recommission two of the current three ball mills at the site.
It noted that while it earns operational income from Manaila and the Pickstone-Peerless gold mine in Zimbabwe, it would need further funding to bring Baita Plai into production and for further capex required to increase production there.
At Manaila, the firm aims to improve the open cast mine to increase volumes and expand the mining licence area to increase the potential to increase the mine life.
Shares added 21.88% to 0.975p.