Vast Resources PLC (LON:VAST) has raised £900,000 through an equity sale organised by the company’s broker SVS Securities.
The funds will be used to meet the group’s current financing needs in Romania where it is advancing towards production.
WATCH: Vast Resources raises £900k to accelerate towards production in Romania
A separate financing process is ongoing – a draft term sheet was previously received from a Swiss Bank for a US$10mln loan – and due diligence in being conducted. In the meantime, Vast intends to bring forward some of the necessary pre-production expenditure for the Baita Plai project.
It is expected that this will significantly cut lead times to the start of production.
This work will include the start of installation work for a seven-kilometre tailings pipe to the tailings dam and the installation of a new and independent electricity supply.
A portion of the placing proceeds will also cover working capital needs.
The placing saw a total of 775mln new shares being issued at a price of 0.116p each. In early trade on Thursday, Vast shares were down 6% at 0.12p.
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