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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Mining

Vast Resources secures finance to take Zimbabwe and Romania projects to production

“The company is now in the healthiest position it has ever been in,” its chief executive said

Vast Resources PLC (LON:VAST) said it is done raising money after agreeing a share subscription and a loan facility to take both its two key projects through to production.

The miner announced on Tuesday that it has raised £1.8mln through the subscription of 902mln shares at a price of 0.2p each, carried out by an unnamed asset manager specialising in natural resources.

WATCH: Vast Resources 'fully funded to production' at key projects in Zimbabwe and Romania

Vast also said it now expects to sign a US$13.5mln (£10.9mln) finance facility by the end of the week, getting the ball rolling for its mines in Zimbabwe and Romania.

“It means that we aren’t coming back to the market for any more money due to the fact that we are fully financed to move forward on the two projects,” chief executive Andrew Pelea told Proactive.

In Romania, Vast is recommissioning the Baita Plai polymetallic mine, and in Zimbabwe, where it is part of a joint venture with the Chiadzwa Community and state-owned Zimbabwe Consolidated Diamond Company (ZCDC) for a diamond project.

The Baita Plai mine is set to begin production by Christmas, while the Zimbabwe development will be mobilised as soon as the finance facility contract is inked.

“The company is now in the healthiest position it has ever been in,” Pelea added.

Shares were up 2.28% to 0.29p in the early afternoon.

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