Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

10 September 2020

Vast Resources plc
(“Vast” or the “Company”)

Progress on asset backed debt financing and Placing to raise £1,683,000 before costs

Vast Resources plc, the AIM-listed mining company, is pleased to update the market on progress on its asset backed debt financing process and to announce that it has raised in aggregate £1,683,000 before costs through a placing (the ‘Placing’) of 1,121,999,999 ordinary shares of 0.1p in the Company (‘Ordinary Shares’) at a price of 0.15p per Ordinary Share (the ‘Placing Shares’).

Following the previous announcement made on 15 May 2020 regarding progress on asset backed debt financing linked to Baita Plai, the Company can confirm that a process, which began in March 2020, with an international banking institution has reached initial credit committee approval after a period of an in depth preliminary due diligence covering technical evaluation, environmental & social impact assessment and KYC analysis following which the Company has now received an indicative proposal with terms and conditions.  Whilst indicative terms are released by most institutions at the beginning of a process, this particular bank will only release documentation following a period of due diligence and an additional approval from its credit committee.  The Company will now enter into a formal agreement with this international banking institution as to the process of finalising terms and completing due diligence with a view to concluding the financing facility and receiving final credit committee approval.

The Placing was undertaken by the Company’s Joint Broker, Axis Capital Markets Ltd.  The cash raised from the Placing will be applied towards the additional working capital that is required on account of delays to cash flow caused mainly through the pause in production caused by the safety issue with the railway bridge issue announced on 7 September.  This will include the costs of advancement of both decline development work to the lower levels to access higher grade ore and the costs of construction of the second production line in order to maintain the Company’s production schedule and cashflow forecast.  This will also include increased personnel and contractor costs and the costs of the new steel railway bridge access point.  The cash raised will also be applied to cover due diligence and legal costs associated with the progression of the debt finance.

Andrew Prelea, Chief Executive Officer of Vast Resources PLC, commented:

“We are of course disappointed that we have had to come back to the Market for further funding to get Baita Plai to recommence production, but are confident that this is now the final stage.  However, we are very pleased to have reached this stage in the process with this international banking institution.  Part of the money being raised is to cover the expenses of this exercise.  The finalisation of this process with the strategic long term debt provider will, once final Due Diligence is completed and final approval for the facility is received, mark a significant turning point in the way the Company is financed moving forward.”

Admission of and dealings in the Placing Shares

Application has been made to AIM for the Placing Shares, which will rank pari passu with existing Ordinary Shares, to be admitted to trading on AIM (‘Admission’) in two tranches.  It is expected that Admission will become effective and dealing will commence in respect of the issue of 233,333,333 of the Placing Shares on or around 16 September 2020 (the ‘First Admission’) and that Admission will become effective and dealing will commence in respect of the issue of 888,666,666 of the Placing Shares on 24 September 2020 (the ‘Second Admission’).  The Placing is conditional on Admission.

Following the First Admission, the total issued share capital of the Company will be 12,240,402,534 and following the Second Admission this will be 13,129,069,200.  The above figures of 12,240,402,534 and 13,129,069,200 respectively may then be used by shareholders, following the respective dates at which the Shares are issued, as the denominator for the calculations by which they will determine if they are required to notify their interest in Vast under the FCA's Disclosure and Transparency Rule.

**ENDS**

For further information, visit www.vastplc.com or please contact:

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”).

ABOUT VAST RESOURCES PLC

Vast Resources plc, is a United Kingdom AIM listed mining company with mines and projects in Romania and Zimbabwe.

In Romania, the Company is focused on the rapid advancement of high quality projects by recommencing production at previously producing mines.

The Company’s Romanian portfolio includes an 80% interest in the Baita Plai Polymetallic Mine. Baita Plai is located in the Apuseni Mountains, Transylvania, an area which hosts Romania’s largest polymetallic mines. Work is now currently underway towards first concentrate production as well as efforts in place to establish a maiden Resource under the JORC code.

The Company also owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance. The Company has been granted the Manaila Carlibaba Extended Exploitation License that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba license area.

In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Chiadzwa Community Concession Block of the Chiadzwa Diamond Fields in Zimbabwe.

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