Vast Resources PLC (LON:VAST) has raised £1.49mln via a placing of shares at 0.18p.
The company has received interest from certain other investors in participating for a further £109,800 on similar terms as the placing and will make a further announcement as and when such arrangements are finalised.
The cash raised will provide funds to settle Vast’s liability to Atlas Capital Markets at the end of July or during August 2020, should Atlas decide to exercise its conversion rights prior to the company finalising the refinancing announced on 15 May 2020.
At current share prices, the necessary sum to achieve this is estimated to be of the order of US$780,000.
In addition, the funds will provide the company with funding for the first month’s production at the Baita Plai polymetallic mine until the first sale of concentrate expected in late August, together with some further general working capital.
“We are happy that the final stages of development at Baita Plai are proceeding on time and as planned and expect that the funds raised today will take us through to the anticipated date when we can achieve cash flow through the sale of concentrate,” said Vast’s chief executive Andrew Prelea.