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Vast Resources expects resources report for Baita Plai by end of week, raises funds

Published: 08:18 26 Oct 2020 GMT

Vast Resources PLC - Vast Resources expects resources report for Baita Plai by end of week, raises funds
The Baita Plai mine in Romania

Vast Resources PLC (LON:VAST) said it continues to expect a JORC reserve & resource report for its Baita Plai project in Romania by the end of this week as it raised funds to boost its working capital balance.

The AIM-listed group said it has raised around £1.75mln through the placing of 1.09mln shares at a price of 0.16p each, an 11.1% discount to its closing price last Friday. Vast said the funds will be partly used to replenish its working capital on account of cash settling the conversion notice issued by Atlas Special Opportunities earlier this month, adding that the funds will also ensure it has sufficient cash to cover the period of time until it receives payment in full from the first sale of copper concentrate to Mercuria.

READ: Vast Resources confirms flotation plant at its Baita Plai mine is now fully operational and producing concentrate

Vast said the money will also provide funds to give it the option to cash settle a conversion notice, up to the settlement value of US$780,000, should Atlas further exercise their conversion rights prior to the company finalising the refinancing with the international banking institution. The cash will also be used to cover additional anticipated costs in relation to the refinancing process with the international banking institution and to cover contingencies.

Meanwhile, in an update on its operations at Baita Plai, Vast said port delivery of 350-400 tonnes of copper concentrate from the mine to Mercuria is expected in early November, adding that as part of further progress with its asset-backed debt financing independent technical consultants have completed a required site visit and independent environmental consultants have confirmed they will undertake a visit to the mine on October 26.

The company also said it is engaged directly with the independent consultants to finalise the due diligence process and is still targeting the finalisation of a binding term sheet by the end of November with final approvals targeted in December.

Manaila licence renewed

Vast added that its application to renew the Manaila mining licence for a further period of five years, to 29 October 2025, has been duly granted. 

The extended mining licence covers the larger Manaila Carlibaba licence area.

Vast shares were 7.7% lower at 0.16p in early deals on Monday.

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