Vast Resources PLC (LON:VAST) has raised a total of £896,000, before costs, through a placing and subscription of ordinary shares to pay off the convertible security issued to Bergen Global Opportunities Fund LP on 20 December 2018.
The AIM-listed mining company, with operating mines in Romania and Zimbabwe, said in total, 663,703,703 ordinary shares were issued at 0.135p each.
In afternoon trading, shares in Vast Resources were 4.9% lower at 0.14p.
It added that the placing, undertaken by the company’s joint broker SVS Securities, was for 550,000,000 ordinary shares, and the subscription was for 113,703,703 ordinary shares with existing shareholders or others known to the company.
The company said the funds will be applied both in repayment of US$675,000 (approximately £525,000) the amount currently outstanding on the Bergen convertible security, and also for general corporate purposes.
Vast Resources announced on Tuesday that the funding of the second tranche of the Bergen convertible security has been paused for at least 60 days, with effect from 8 February 2019.