Aim-listed mining company Vast Resources has raised in aggregate £900 000 before costs through a placing of shares at 0.116p each.
The cash raised from the placing should be sufficient to meet all the company’s financing needs in connection with its activities in Romania and general working capital until drawdown of a $10-million loan, the operator of the Baita Plai polymetallic mine reported on Thursday.
The company last month announced that it had received a draft term sheet from a Swiss bank for loan finance of up to $10 million. This is to be applied in connection with the company’s Romanian projects, including full repayment of the $4-million plus accrued interest to Mercuria.
“While due diligence on the provision of the Swiss bank loan finance and/or any equivalent progresses, the company plans to incur some of the necessary pre-production expenditure for Baita Plai in advance of the receipt of the loan finance. This will significantly reduce the lead time up to commencement of production.”
The pre-production expenditure will include the start of the installation of a 7 km tailings pipe to the tailings dam and the installation of a new and independent electricity supply at Baita Plai.