Vast Resources PLC (LON:VAST) has raised £1.25mln through a share placing to help fund the development of its operations in Romania and Zimbabwe.
The AIM-listed miner issued 238.1mln new shares at a price of 5.25p each – not far below Tuesday’s closing price of 5.4p.
READ: Vast seeks permission to issue new equity
In a letter to shareholders earlier this month, Vast said it had identified an additional funding requirement of £1.6mln (US$2.18mln), which would fund additional dewatering at the Baita Plai mine, pay for equipment at the Manaila mine and provide seed capital for new projects.
Along with the cash being generated from its mines, the company said the placing means it now has enough to push ahead with those plans.
Vast shares rose 2.8% to 0.56p shortly after the announcement.