Vast Resources PLC (LON:VAST) has decided not to draw down the US$3mln balance of its US$5 million facility in place with financier Bracknor Fund.
New alternatives to raise the money are now being sought it said. The facility was arranged in October.
Bracknor, meanwhile, has converted £100,000 of debt into equity, which leaves £408,500 outstanding.
Last month,Vast started full-scale commercial zinc production at its Manaila polymetallic mine in Romania.
Vast wanted the money to refine the zinc production line and to expand the maiden JORC resource at Manaila.
Shares rose 2% to 0.18p.