Vast Resources repays outstanding bonds to Atlas Special Opportunities
Shares in (VAST ) jumped as high as 81% on Monday after it repaid in full the outstanding bonds owed to Atlas Special Opportunities following a subscription and placing.
The mining firm has secured a $4m asset backed debt facility from A&T Investments SARL (Alpha) arranged by Alpha Credit SA, a Swiss investment banking and asset management boutique, and raised in aggregate £3.243m through a placing of 463m shares at 0.7p each.
In practice, the company’s repayment means that Atlas no longer has any conversion or any right to call for the issue of Vast’s ordinary shares and removes any share dilution concerns.
The Company has also undertaken to pay back US$1.0m of debt owed to Mercuria Energy Trading SA and plans to repay the entire debt owed to Mercuria on or before 15 May 2023.
Vast said the funds raised from the subscription and placing will be used to settle the balance of debt to Atlas over $4.0m and the agreed debt reduction commitment to Mercuria, as well as to support the continued optimisation of the group’s Baita Plai polymetallic mine in Romania.
Vast sees the refinancing as such “a pivotal development”, particularly when coupled with the various operational developments which it said is “gaining pace” at Baita Plai and elsewhere.
“The successful repayment of Atlas marks a definitive turning point for the Company that the Board believes should restore fair value in our share price,” commented CEO, Andrew Prelea.
Vast believes its investment and development work undertaken at Baita Plai over the recent months, together with the new revenue streams being introduced as a result of Vast interests in Tajikistan, are “already reshaping” the company’s financial performance. As a result, Vast expects the refinancing to ensure its gains are translated into real returns for shareholders.
The oversubscribed Subscription and Placing also gives the opportunity for Vast to accelerate the planned initiatives to increase revenue and production levels at Baita Plai, Prelea outlined.
Prelea informed investors that Vast intends to engage with shareholders on a variety of channels in the coming weeks including through a live presentation and Q&A session.
View from Vox
This morning’s successful repayment of Atlas Special Opportunities marks “a definitive turning point” for the Company that the Board believes should restore fair value in Vast’s share price.
While Vast has shed nearly 90% in value since May 2021, shares were up as high as 81% this morning following the announcement that Atlas would no longer have any conversion or right to call for the issue of Vast’s ordinary shares, thus removing any share dilution concerns.
With various operational developments gaining pace at the company’s Baita Plai polymetallic mine in Romania and elsewhere, the Board considers today’s news as a “pivotal” moment.
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