After raising £1mln (US$1.32mln) from investors earlier in the week, Vast Resources PLC (LON:VAST) has outlined the details of the follow-up open offer.
Vast is looking to raise up to another £1.23mln (US$1.64mln) through the open offer by issuing 238.1mln shares at 0.525p apiece – the same price as the placing.
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The company reckons it will need US$10mln (£7.5mln) to progress its various operations and the open offer will go some way towards achieving that.
As for the rest of the cash, Vast “believes it is in a good position to obtain non-equity diluting off-take financing” that will help advance its Baita Plai and Manaila polymetallic mines.
Manaila mine ramps up production
The company said it has made “significant progress” over the past 20 months at its operations.
Its Manaila polymetallic mine in Romania has a current JORC indicated and inferred mineral resource of 2.6mln tonnes open pit at 1.0% copper and 0.9% zinc at a cut-off grade of 0.25% copper, together with considerable exploration targets.
READ: Vast raises £1mln through placing
A licence extension has been granted, raising the total prospecting licence area by more than 20 times, while production at the mine has increased.
Vast plans to establish a second open pit mining operation at the Carlibaba prospect, located adjacent to the current Manaila open pit, after completing phase 1 and 2 drilling.
Association licence for Baita Plai 'imminent'
The Baita Plai Polymetallic Mine in Romania contains several veins in calcareous sediments in five distinct pipes. It has a reserve and resource under the Romanian reporting system of 1,800,000 tonnes copper-lead-zinc, gold and silver with uncategorised resources of molybdenum, tungsten and bismuth.
Following a “long and difficult” process due to the insolvency of the previous owner, Vast said directors think a grant of an association licence that provides the right to mine is “imminent”.
The mine is due to become operational within six months of the grant of the licence.
Budgeted expenditure before first revenue is US$1.5mln.
At the Pickstone Peerless gold mine in Zimbabwe, Vast has “significantly increased” production and revenues.
A new sulphide plant at Pickstone is nearing completion and is due for commissioning imminently.