Vast Resources PLC (LON:VAST) said its directors are pursuing other potential offers of finance after saying it would no longer receive a long-awaited US$5.5mln tranche from Mercuria Energy Trading as part of a prepayment agreement between the two.
The prepayment off-take agreement reached between the companies last year was for 100% of the copper and zinc concentrate produced at Vast’s Manaila polymetallic mine and Baita Plai polymetallic mine.
READ: Vast Resources inks US$3.0mln bridge facility with Bergen Global Opportunity Fund to finance further working capital
Mercuria was to make up to US$9.5mln available to the company that would be drawn down in two tranches: US$4mln before March 5 and up to US$5.5mln further down the line.
But in a statement on Friday, Vast said Mercuria has informed the group that it is not proceeding with the US$5.5mln tranche.
“The directors are urgently pursuing other potential offers of finance and will report on progress as soon as possible,” it said.
Last month, Vast entered into a US$3.0mln bridge facility with the Bergen Global Opportunity Fund to finance further working capital, including for the Baita Plai Polymetallic Mine and other leading projects.
The company said that the facility had become necessary due to the continued delay of the US$5.5mln Tranche B of the Mercuria prepayment facility.
Shortly after its announcement about Mercuria on Friday, Vast said it has received a notice of conversion in respect of US$500,000 out of the convertible security issued to Bergen at a price of 0.24p.
The company is to issue 164,469,356 ordinary shares of 0.1p each and has applied for the shares to be admitted to trading on AIM.