Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
12 February 2019
Vast Resources plc
(“Vast” or the “Company”)
Financing Update
Vast Resources plc, the AIM listed mining company with operating mines in
The Company remains in discussions with potential investors in two areas:
- discussions continue for replacement offtake finance principally to bring Baita Plai into production and also to provide other working capital for the Group. The Company anticipates that these arrangements would be likely to have a similar structure to those previously contemplated for Tranche B finance with Mercuria. In addition to replacing Tranche B the discussions also include the possibility of replacing Tranche A.
- the Company is advancing discussions with a potential “cornerstone” investor to cover the expenditure required to bring the proposed
Zimbabwe diamond project into production as well as providing a possible alternative to new off-take finance as mentioned above. The Marange – Zimunya Community Trust (owner of Red Mercury with which the Company has a joint venture agreement) is consistently informing Vast that it is expecting to receive at any time updated documentation from the Zimbabwean Ministry confirming the right to mine.
It should be stressed that all these finance discussions remain at the diligence stage and are dependent upon the signing and completion of legal agreements in the normal course of business. In addition, whilst Vast expects that the documentation concerning the right to mine will be forthcoming as stated above this and/or the terms on which mining can be carried out cannot be guaranteed with certainty.
As a result of the agreement of the Mercuria offtake finance term sheet announced on 25 January 2018 the Company agreed accelerated repayments of the loan from Sub Sahara Goldia Investments (SSGI) (originally not repayable until 2021) in order that security held by SSGI over Romanian assets could be released in favour of Mercuria. These repayments were expected to have “dovetailed” into the expected finance from Mercuria. Without Tranche B, the Company has not been able to make the payments due to SSGI in December 2018 and January 2019. The Company is in discussions with SSGI concerning an alternative repayment proposal and these discussions are ongoing.
The Company also announces that Bergen Global Opportunities Fund LP (Bergen) have elected under the terms of their agreement to pause the funding of Tranche 2 pursuant to the
**ENDS**
For further information, visit www.vastresourcesplc.com or please contact:
Vast Resources plc Andrew Prelea (Chief Executive Officer) | www.vastresourcesplc.com +44 (0) 20 7236 1177 |
Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle | www.beaumontcornish.com +44 (0) 020 7628 3396 |
Brandon Hill Capital Ltd – Joint Broker Jonathan Evans | www.brandonhillcapital.com +44 (0) 20 3463 5016 |
SVS Securities Plc – Joint Broker Tom Curran Ben Tadd | www.svssecurities.com +44 (0) 20 3700 0100 |
St Brides Partners Ltd Susie Geliher Juliet Earl | www.stbridespartners.co.uk +44 (0) 20 7236 1177 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).
Notes
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 producing mines in
Vast Resources currently owns and operates the Manaila Polymetallic Mine in
The Company also has interests in a number of projects in