Vast Resources PLC (LON:VAST) was a top riser in London on Thursday morning after it updated on financing discussions as well as the restructuring of its business.
The mining firm said it was expecting term sheets (non-binding investment agreements) from financial institutions for loan finance to bring its Baita Plai metal mine in Romania into production.
READ: Vast Resources to exit gold production with sale of Pickstone Peerless in Zimbabwe
The group also said it was in “advanced discussions” with a potential cornerstone equity investor who had now expressed a “definite interest” to proceed in principle.
The interests of both these parties were contingent on shareholders approving the company’s restructuring at a meeting on 23 April, which included Vast selling its 25% stake in the Pickstone Peerless gold mine in Zimbabwe to help reduce its loans and other liabilities.
Vast said the transaction would reduce other loan and liabilities on its balance sheet by nearly US$38mln to US$10.5mln vs US$48.3mln.
Through the sale, a US$3.4mln loan to Sub-Sahara Goldia Investments (SSGI) would be largely repaid and give the company the ability to raise finance from other parties.
Shareholders at the meeting will be asked to extend its accounting period by a month to 30 April to allow the deal to complete.
The group added that it had reached an advanced draft of its joint venture agreement with the Chiadzwa Community Development Trust for the Heritage diamond concession, also in Zimbabwe, for which it had received the right to mine in February.
Following the signature of the joint venture agreement, the group said operations at the project would be able to commence immediately.
Shares were up 13.8% at 0.17p.