Mining group Vast Resources PLC (LON:VAST) unveiled plans to raise up to £1mln via an open offer to existing shareholders as it continues to try and unlock what it sees as the value in its portfolio.
It comes after last week it brought in £855,000 through issuing 3bn shares at 0.285p each, after shareholders rejected getting more funds via the agreement with Crede.
Since the beginning of the month, production continues above expectations at its Pickstone-Peerless gold mine in Zimbabwe, it noted.
Meanwhile, the firm said satisfactory progress continues to be made towards advancing the grant of the sub-licence at Baita Plai Polymetallic Mine in Romania, which would allow development to start.
"We are pleased to be able to say that the strong support of the Zimbabwe authorities has assisted the Zimbabwean mine management to operate the Pickstone-Peerless Gold Mine at higher than expected levels of production," it added.
Of last week's cashcall, Roy Pitchford said: "We are grateful to the subscribers that stepped forward at short notice and showed their confidence in Vast's prospects and its management.
"Of course, we will need further funding to allow the company to fulfill its development programme and in the past shareholders who have not had the chance to subscribe for placings have felt aggrieved and have complained to us.
"The directors felt, therefore, that we have an obligation to make an Open Offer to shareholders on the same terms as the placing."
He noted though that 0.285p (shares now at 0.245p) does not now represent an attractive discount, although the warrants attached to will appeal to some shareholders, he said.
"The open offer might not, therefore, be enthusiastically supported. However, the attraction for the company remains that it opens the way for us to seek shareholder permission to issue more shares to fund the company's development," said the company boss.
In the open offer, Vast plans to issue up to around 350.8mln shares at 0.285p each.
Vast estimates it needs around £4.1mln for its work programme for the next six months, assuming the grant of the Baita Plai mining sub-licence.