Vast Resources PLC (AIM:VAST) said it raised £420,000 via a subscription and will use the proceeds to buy additional mechanised equipment for its Baita Plai polymetallic mine in Romania.
Existing individual shareholders subscribed to 50mln new shares at 0.84 pence per share, a 60% premium to the closing share price yesterday.
In addition, the company said it will issue, “when it has sufficient headroom available”, the investors with 160mln warrants to subscribe for new shares at a price of 0.525p per share. The combined shares and warrants represent a 14.3% premium to yesterday’s closing share price.
The AIM-listed miner also provided an update on the Baita mine and on the refinancing of Atlas Special Opportunities LLC.
Consistent underground production has been achieved over the past three months at Baita, it said, adding that sales of copper concentrate continues with regular deliveries being made to its offtake partner.
It has also accessed high grade ore on sub-level 2, which supports an increase in concentrate production moving forward.
“The developments at Baita over the past three months have been very encouraging and we believe that we have achieved an operational turnaround to support the levels of production that we have been anticipating,” said chief executive Andrew Prelea.
It anticipates a further increase in volume and grade once long-hole stoping operations start in June, while a molybdenum flotation circuit is expected to be operational in the second quarter, which will provide additional revenue.
Vast also said it was continuing to make progress regarding an outstanding US$5.55mln due to Atlas Special Opportunities LLC under a bond deal and that it expects to achieve the refinancing by the end of this month.
The shares were up 4.8% at 0.55 pence in early trading.