Vast Resources PLC (AIM:VAST) said it is raising £656,000 through a placing of 164mln shares at a price of 0.4p per share.
The money raised will ensure the company’s operations continue to be supported over the coming weeks as a consequence of a delay in exporting its latest concentrate shipment, due to shipping availability.
In addition, the underground production ramp up of production at Baita Plai in Romania is now occurring later in the third quarter of 2022 than originally anticipated, resulting in a requirement for additional working capital.
The company’s next concentrate sale from Baita Plai is now expected in the first half of October.
Vast said it expects to publish its third-quarter production report before the end of October. This is still expected to show a significant increase in production from Baita Plai over that reported in the second quarter of 2022.
Sales volumes are also expected to continue to increase from October onwards, as a result of underground production increasing now that long hole stope blasting has commenced.
“Our progress at Baita Plai continues and we are consistently improving our production volumes,” said Andrew Prelea, chief executive of Vast.
“This progress was achieved from the beginning of September, with the introduction of long hole stope mining, and the benefits of this are being witnessed at the mine as our volumes increase. This is expected to feed through to our Q3 figures and to continue over the remaining months of the year and into 2023.”