Vast Resources plc/ Ticker: VAST/ Index: AIM/ Sector: Mining. Increase in authorities to issue warrants as security for outstanding Mercuria Tranche A finance- cancellable on repayment of such finance Notice of General Meeting. Vast Resources plc, the AIM-listed mining company, announces that a letter from the Chairman of the Company including a Notice of General...
VAST RESOURCES PLC/Ticker: VAST/Index: AIM/Sector: Mining. In conformity with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the Company announces the following:. As at the date of this announcement the Company's issued ordinary share capital consists of 7,945,171,311 ordinary shares of 0.1 pence each with voting...
Vast Resources plc/ Ticker: VAST/ Index: AIM/ Sector: Mining. Vast Resources plc, the AIM listed mining company, is pleased to announce that following the update of 11 April 2019 that it was expecting financing term-sheets, it has now received a draft indicative term sheet containing the material indicative terms from a Swiss bank for loan finance of up to US $10...
Notes Vast Resources plc, is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield projects by recommencing production at previously producing mines in Romania and finalising its Chiadzwa Community Development Trust joint venture on the Heritage Concession in Zimbabwe.
Vast Resources plc, is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield projects by recommencing production at previously producing mines in Romania and finalising its Chiadzwa Community Development Trust joint venture on the Heritage Concession in Zimbabwe.
Vast Resources* (VAST LN) 0.15p, Mkt Cap £11m – £600k equity placing • The Company raised £600k before expenses by issuing 444.4m shares at 0.135p. • Andrew Prelea (CEO) and Roy Tucker (FD) subscribed for 7.4m and 29.6m shares. • Proceeds to be directed to working capital requirements at Heritage Concession (£300k) and Baita Plai as well as general corporate purposes (£300k). *SP Angel acts as Broker to Vast Resources
Vast Resources plc/ Ticker: VAST/ Index: AIM/ Sector: Mining. 222,222,222 of the Placing and Subscription Shares were issued under existing authorities available to the Board relating to Baita Plai Polymetallic Mine and for general corporate purposes and 222,222,222 of the Placing and Subscription Shares were issued under existing authorities available to...
Vast Resources* (VAST LN) 0.16p, Mkt Cap £11.6m – Financing update • The Company is reporting it is due to receive loan term sheets in respect of Baita Plai development and working capital. • Additionally, Vast is in advanced discussions with a potential cornerstone equity investor who is said to have expressed a definite interest to proceed in principle. • The loan and investment by a potential cornerstone investor are conditional on the passing of the resolution to approve the restructuring as well as completion of due diligence and the signing of definitive legal agreeements. • In Zimbabwe, dicussions with the Chiadzwa Community Development Trust regarding a JV agreement on the Heritage Concession are advancing with an advanced draft completed. *SP Angel acts as Broker to Vast Resources
Vast Resources Plc (VAST.L) Announced, in its update, that the company is expecting term sheets from financial institutions for loan finance to bring Baita Plai into production and to provide working capital for the group and has advanced discussions with a potential cornerstone equity investor to the extent that the investor has now expressed a definite interest to proceed in principle.
Vast Resources plc/ Ticker: VAST/ Index: AIM/ Sector: Mining. Vast Resources plc, is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield projects by recommencing production at previously producing mines in Romania and finalising its Chiadzwa Community Development Trust joint venture on...
VAST Resources Event Vast Resource (“Vast”) has announced that a letter from the Chairman of the Company (the ‘Letter’) including a Notice of General Meeting has been posted to Shareholders late on 5 April 2019. The principal matter dealt with in the Letter is the proposed sale by the Company of its 50.01% interest in Ronquil Enterprises (pvt) Ltd through which the Company holds its Zimbabwe gold assets, being the remaining 25.01% economic interest in the Pickstone Peerless Gold Mine and associated assets (principally the Eureka Gold Mine). A sale contract has been concluded subject to the approval of Shareholders which approval is required as the Proposed Sale falls within Rule 15 of the AIM Rules relating to fundamental changes of business. Comment Vast also plans to change its year end from the 31 March to 30 April. The reason for this change of date is that assuming that the 3 resolutions: To approve the transaction subject to the passing of Resolution 1, to change the Accounting Reference Date of the Company to 30 April so that the next financial statements of the Company will be made up to 30 April 2019 to extend the exercise period of the Warrants from 30 June 2019 to 31 December 2019 are passed. The reason for the change in the year end is that it will allow time for the balance sheet to be de-consolidated. The impact of this will be to remove approximately US$38M of the existing debt. At the last reporting date, the 2019 interim results released on the twenty fourth of December, for the six months ending 30 September 2018, Vast had a total of US$44.93M of debt and long term creditors. This will reduce the leverage from around 45% to approximately 12.5%, and enable Vast to borrow some more money to fund the development of Baita Plai and Heritage Diamond Concessions in Zimbabwe. However, Vast’s track record of operating in Romania profitably leaves much to be desired and could potentially make further borrowing difficult. There are currently 521,197,123 warrants giving the right to subscribe for shares in the Company at 0.5p per share. The Warrants expire on 30 June 2019, and since the Company’s share price is at the date of this letter below 0.5p the Warrants will have no value failing a substantial increase in the share price of the Company by 30 June 2019. Subject to approval by Shareholders, the Board would like to create goodwill to long-term Shareholders by extending the exercise period of the Warrants to 31 December 2019 so as to give the Shareholders who took part in the Placings and the Open Offer an increased possibility to benefit from the exercise of the Warrants. Additionally, this will provide the possibility of up £2.6M of additional funding for the Company’s working capital requirements. The Transaction The Company has concluded a contract with, as parties, Southern African Trade Finance Ltd (SATF), a company registered in the British Virgin Islands, as the purchaser, and SSGI: and a second contract with, as parties, SATF, SSGI and Canape Investments (pvt) Ltd (Canape) the Company’s wholly owned Zimbabwean subsidiary, the combined effect of which is to assign the Groups 50.01% interest in Ronquil to SATF. SSGI is a party to the contract as a Confirming Party as it has a security interest pursuant to the SSGI Loan, and also is the parent company of the owner of the other 49.99% interest in Ronquil; but otherwise has no material interest in or benefit from the Transaction. The key terms of the combined contracts are as follows: · The consideration from SATF is US$2.5M payable outside Zimbabwe plus *RTGS$2.5M (being US$1M) payable in Zimbabwe. · The US$2.5M payable externally will be applied in part repayment of US$2.5M of the SSGI Loan. · The RTGS$2.5M payable in Zimbabwe will be retained by SSGI as security until the SSGI Loan is repaid in full but if remitted from Zimbabwe may be applied in further repayment of the SSGI Loan. · SSGI has assigned back to the Company a loan due from Canape of US$3,168,059 value dated at 31 December 2016. This loan was equitably assigned to SSGI as part of a larger transaction pursuant to the agreements with SSGI announced on 30 January 2017 in connection with the acquisition by SSGI and its subsidiary of a 49.99% interest in Ronquil. · As a condition precedent that the Transaction must be approved by the Company’s Shareholders at a General Meeting no later than 23 April 2019. After completion of the Transaction, Canape will have no material assets apart from RTGS$2.5M which will remain charged to SSGI until the SSGI Loan is fully repaid. It will owe on loan account US$18,012,050 to the Company and US$11,669,995 due to SSGI, all value dated 31 December 2016 (together the Historic Loans). Neither principal nor interest is payable on the Historic Loans unless and until Canape has the ability to pay. If repaid they must be repaid pro rata save that the first RTGS$2.5M may be repaid to the Company in priority. In practical terms, there is no likelihood that the Historic Loans or interest thereon will ever become payable, however the liability to SSGI will remain on the Company’s consolidated Balance Sheet whilst Canape remains a subsidiary of the Company. In order to resolve this matter on the Company’s Balance Sheet, the Company is proposing that after the Transaction is completed the shares of Canape will be transferred to a trust under independent control for the benefit of Zimbabwe staff thus enabling Canape to be deconsolidated. As a result, the Historic Loan of $11,669,995 will no longer appear as a liability on the Company’s Balance Sheet. What Can Go Wrong BHC understands that the exchange rate between the US$ and the RTGS$ has slipped from the 2.5 mentioned in the press release to around 3 today. Not being privy to the finer points of the transaction, we do not know the impact of this. Secondly, it should be noted that SSGI has a charge over Vast’s 50.1% interest in Ronquil and SSGI’s charge also extends to certain of the Romanian assets although the exact details are not specified. Why Keep the Heritage Concession In relation to the Heritage Concession Vast have been led to understand that we should be successful in making application that the area of the concession be included in a Special Economic Zone. Such a designation will give the operation enhanced ability to receive and retain diamond revenues outside Zimbabwe and in addition will give exemption for customs duties on imports.
Vast Resources* (VAST LN) 0.16p, Mkt Cap £12m – Proposed sale of Zimbabwean gold assets and balance sheet restructuring The Company is proposing three resolutions to be voted at the General Meeting scheduled for 23 April including: Approve a transaction The Company is proposing to dispose of a 50% interest in Ronquil Enterprises through which Vast holds an economic interest of 25% in the producing Pickstone Peerless Gold Mine and associated assets (principally the Eureka Gold Mine) in Zimbabwe. The consideration will consist of $2.5m payable outside Zimbabwe and RTGS$2.5m (equivalent to $1m using current market rate of 2.5RTGS$ per US$) payable in Zimbabwe. The $2.5m part will applied in part repayment for $2.5m of the SSGI loan with the RTGS$2.5m to be retained by SSGI as security until the loan is repaid in full or if remitted outside Zimbabwe may be applied in further repayment of the SSGI loan (estimated at $3.4m). The transaction will allow to simplify the balance sheet and eliminate some $38m of debt through a deconsolidation of liabilities related to the funding of both Pickstone Peerless and Eureka. Excluding a $2.5m reduction in debt to SSGI, the transaction will see the Company’s liabilities coming down $10.5m from $48.3m as of Sep/18 improving the Company’s ability to raise finance for other projects.Change Upon full repayment of the loan to the SSGI, the Company will reclaim the charge over certain of the Romanian assets. Change the accounting reference date to 30 April in order to accelerate publication of a simplified balance sheet of the Company. Audited accounts for the 13 month period ended 30 April 2019 will then have to be released by 30 September 2019. Extend the exercise period of existing warrants buy six months to Dec/19 521.2m warrants with an exercise price of 0.5p issued as part of the Jul/16 and Aug/16 placings are due to expire on 30 Jun/19 with an extension potentially providing an opportunity to the Company to receive £2.6m worth of additional funding for working capital needs. Directors recommend to vote in favour of all three proposals. The transaction will “allow management to focus its efforts on the two core focus assets in the Company, namely the Heritage Concession in Zimbabwe and Baita Plai in Romani (as well as) open up significant funding opportunities to the Company for the Romanian projects that have been delayed due to historic financial structures and arrangements that in turn hampered the Company’s ability to progress our near term goals”, the Company commented on the announcement. *SP Angel acts as Broker to Vast Resources
Vast Resources plc/ Ticker: VAST/ Index: AIM/ Sector: Mining. The principal matter dealt with in the Letter is the proposed sale by the Company of its 50.01% interest in Ronquil Enterprises Ltd through which the Company holds its Zimbabwe gold assets, being the remaining 25.01% economic interest in the Pickstone Peerless Gold Mine and associated assets.
Vast Resources Plc (VAST.L) Announced that it has appointed SP Angel Corporate Finance LLP as Joint Broker to the company with immediate effect.
Vast Resources plc, the AIM-listed mining company with mines in Romania and Zimbabwe, is pleased to announce that it has appointed SP Angel Corporate Finance LLP as Joint Broker to the Company with immediate effect. Vast Resources plc, is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield...
As at the date of this announcement the Company's issued ordinary share capital consists of 7,500,726,867 ordinary shares of 0.1 pence each with voting rights. Vast Resources plc is an AIM listed mining and resource development company focussed on the rapid advancement of high quality brownfield projects and recommencing production at previously...
VAST Resources Event Vast Resource (“Vast”) has announced that its wholly owned Manaila Polymetallic Mine (the Mine) that has been on care and maintenance since mid-December 2018 due to weather conditions (as previously notified Romanian mines close for the December, January and February months for general repairs and maintenance and the Company has readopted this philosophy) will not now be re-opening this month despite improved weather conditions, and will now only be reopened after a corporate restructuring, that is currently being prepared, is finalised. Comment The company states that “the board and management have decided to continue to keep the Mine on care and maintenance temporarily in order to reduce costs, and to reopen once the refinancing of the group is completed and an effective mine plan that will achieve profitability, can be implemented”. The sad reality of life is that currently Vast have only a 25% interest in the Pickstone-Peerless mine that is operating. This mine is in Zimbabwe and it is very difficult to get money derived from gold mining out of Zimbabwe. Whilst Pickstone-Peerless is profitable and cashflow positive, the monies generated by the mine are being used to develop its sulphide circuit and other assets in Zimbabwe. According to published financial statements by Vast, the Manaila mine has not been cashflow positive for the past 18 months and having been on care and maintenance for the past 4 months, the current 6 monthly period is not expected to be any different. It is also very disappointing to see that that Vast has made the decision to stop quarterly reporting. The next problem surrounds Baita Plai. It was originally due to commence production in the September quarter this year, but the current corporate restructuring is likely to cause a delay to this schedule. At the last reporting date, the 2019 interim results released on the twenty fourth of December, for the six months ending 30 September 2018, Vast had a total of US$44.93M of debt and long term creditors. The proposed restructuring, when revealed in detail will be very interesting and we hope that the company will be able to move forward constructively.
Vast Resources (VAST LN) 0.16p, Mkt Cap £12.0m – Manaila polymetallic mine update The Company decided to leave operations at Manaila on care and maintenance and will only be reopened after a corporate restructuring that is currently in progress. Operations have been temporarily suspended since mid-December due to cold weather conditions with general repairs and maintenance carried in the meantime. The Company is in the middle of a corporate restructuring that seeks to implement a consolidation of the group’s assets to reduce cots and improve income generation of the Group. The Company has also decided to cease quarterly reporting amid continuing restructuring. Conclusion: While suspending Manaila reduces concentrate production, the decision will help the Group to reduce the cash burn at operations that cost the group $1.0m and $3.1m in FCF in FY18 and FY17, respectively.
Vast Resources has transitioned from an exploration company to a mining company, with a portfolio of high quality assets. In the short-term, the Company is focused on optimising mining operations at the Manaila Polymetallic Mine in Romania and exploring and developing the proximal area with the objective of establishing a multi-pit mining operation and new metallurgical processing complex. In addition, the Company intends to commission the Baita Plai Polymetallic Mine, also in Romania, once the relevant approvals are granted. The Board sees that the Manaila and Baita Plai mines will serve as a test case for future developments in Romania, which includes pursuing the Company’s relationship with Remin SA., amongst other interesting prospects. Additionally, the Company intends to retain its interest in certain interests in Zimbabwe, including its current controlling 25% interest in the Pickstone-Peerless Gold Mine, which was commissioned in 2015, and the proximal Giant Gold Mine Project, where recommencement of operations is now being evaluated. Vast continues to actively manage its Zimbabwean gold portfolio and intends to retain its controlling interest in the Pickstone-Peerless Gold Mine. The Company also has a pipeline of additional assets at various stages in the development curve, from deposit discovery to previously producing mines; the Board aims to realise these assets within a sensible time frame. In the interim, the Company is committed to keeping a low-cost base and generating revenues.