Vast Resources PLC (LON:VAST) said it has now received a draft indicative term sheet from a Swiss bank for loan finance of up to US$10mln to be used in connection with the company’s Romanian projects.
The AIM listed mining company added that the monies will also be used for full repayment of the US$4mln plus accrued interest owed by the company under the Mercuria Prepayment Agreement.
The AIM-listed mining company added that the monies will also be used for full repayment of the US$4mln plus accrued interest owed by the company under the Mercuria Prepayment Agreement.
READ: Vast Resources raises £600,000 in placing to fund Baita Plai and Heritage projects
The group said that in order to maintain its relationship with Mercuria, and in accordance with the warrant instrument issued as part security to Mercuria under the prepayment agreement, it will shortly be calling a general meeting in order to propose an increase in its authority to issue warrants to Mercuria as security for the outstanding instalment amounts now falling due.
At the same time, the company added, it will be asking that the terms of the authority granted be widened so as to enable any warrants issued to or capable of being issued to Mercuria also be available as security for the Swiss bank or any other financier who replaces Mercuria.
Andrew Prelea, Vast’s chief executive commented: “Whilst we have been in discussions with possible financing institutions for some time, the restructuring of the Balance Sheet and the recent disposal of our Zimbabwe gold assets enables us to shift focus towards near term cash flow projects - Baita Plai and the Heritage Diamond Concession - that are under our more direct management, and has opened up the opportunity to pursue more traditional lending media.”
He added: “Whilst I understand the frustration of shareholders over the course of the past few months, management has been working hard to enable the Company to react as quickly as possible now that we have the possibility to obtain more traditional lending.”