Shares of Vast Resources PLC (LON: VAST) today surged 16.9% after the mining company announced that it had raised £4.8 million via a share placement to meet the equity requirements to finance its Baita Plai project in Romania.
The company said that the detailed term sheet announced earlier had been agreed by its executives and those of the international banking institution (the “Bank”) and that the Bank’s final credit committee would meet to approve the financing on December 15.
Part of the conditions for the financing was that the company raises $6.2 million, which is why it raised £4,846,579.90 via the placement of 3,671,651,439 ordinary shares at a pice of 0.132p per share.
Today’s decline was precipitated by the 19% discount at which the new shares were offered to investors in comparison to the stock’s closing price on Tuesday.
Andrew Prelea, the Company’s CEO, said: “The asset-backed debt facility is a key corporate and commercial objective for Vast, and one which I believe will prove beneficial for shareholders as we move into 2021. This is clearly recognised by the new and existing investors who have participated in today’s placing and I believe that this development will provide Vast with the financial optionality to successfully capitalise on the anticipated ramp-up to full production at our Baita Plai Polymetallic Mine.”
The new shares will be admitted for trading on the AIM in two trenches with the first batch of 755,587,515 ordinary shares being admitted on 15 December 2020, while the second tranche of 2,916,063,924 shares will start trading on 23 December 2020.
Vast share price
Vast Resources share plunged 16.9% today to trade at 0.135p having fallen from Tuesday’s closing price of 0.1626p.