Vast Resources PLC (AIM:VAST) said it raised a gross £1.35mln through a placing and will use the proceeds to cover a shortfall in working capital and for contingencies.
The AIM-listed mining company placed 54 million shares at a price of 2.5p each. The placing was undertaken by Axis Capital Markets Ltd, the company’s joint broker.
On Monday, Vast said the mechanised mine plan for its producing Baita Plai polymetallic mine in Romania had been delayed and it was engaged in several financing discussions focused on Baita Plai and its Manaila polymetallic mine, both in Romania. It is seeking to resume production at Manaila.
"Since 2019, the fundamental value of both Baita Plai and Manaila has grown significantly,” Paul Fletcher, chief financial officer of Vast Resources, said on Monday. “Independent commentators have placed values on Baita Plai and Manaila in excess of US$100mln, with Baita contributing US$80mln. This represents a substantial premium over the company's existing share price.”
The shares closed at 3.85 pence on Wednesday.
The company also confirmed it will make its next sale of concentrate to its offtake partner in early November.