Vast Resources PLC (LON:VAST) has launched a £4.8mln share placing which will satisfy the equity requirement for a larger financing package for the Baita Plai project in Romania
The company told investors that the financing term sheet with an international banking institution is advancing and will go to bank’s final credit committee approval on December 15.
Among the conditions is the requirement for the company to raise the equivalent of US$6.2mln of additional equity, and, as such the company is now launching the share placing.
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It is issuing some 3.67bn new shares priced at 0.132p each in the placing, which is being executed by broker Axis Capital.
“The asset-backed debt facility is a key corporate and commercial objective for Vast, and one which I believe will prove beneficial for shareholders as we move into 2021,” said Andrew Prelea, Vast chief executive in a statement.
“This is clearly recognised by the new and existing investors who have participated in today’s placing and I believe that this development will provide Vast with the financial optionality to successfully capitalise on the anticipated ramp-up to full production at our Baita Plai Polymetallic Mine," he added.