Vast Resources PLC (LON:VAST) has raised £900,000 via a placing and subscription of just under 61mln shares at a price of 0.15p each.
The money raised will be used to accelerate and expand drilling and metallurgical test work process, following successful metallurgical results from the Baita Plai polymetallic project in Romania released on May 15. These showed elevated gold and silver grades, and are expected significantly to enhance the value of Baita Plai.
Two directors, chief executive Andrew Prelea and finance director Paul Fletcher, subscribed for 30mln shares between them.
“As a consequence of the recently released metallurgical test results, the board and management felt that it was prudent to accelerate further test work and reports on the Baita Plai project to enhance its value for the refinancing opportunity,” said Prelea said in a statement.
“With the newly commissioned reports, expanded drilling and accelerated test work, the intention is to achieve a greater asset value to shareholders, in turn providing better long-term shareholder value. We look forward to updating the market with updates related to financial negotiations and the further test results as they occur.”
The company also recently stated that negotiations with two institutional investors in relation to a non-equity linked asset-backed debt structure linked to Baita Plai have now reached a well developed stage. Such financing would be used to refinance the Tranche 1 convertible bonds issued to Atlas Special Opportunities LLC.
Due diligence to secure the financing has commenced and in order to expedite this the company is now accelerating and expanding its drilling and metallurgical test work process. The company looks forward to updating the market in due course on further developments regarding the refinancing.