Shares of mining company Vast Resources (LON: VAST) have taken a tumble Thursday after it said it has raised £1.35 million through a placing of 54million shares.
The shares were [riced at 2.5p, while it was undertaken by the company’s joint broker, Axis Capital Markets.
The net cash raised from the placing will cover the shortfall in working capital that has arisen for the reasons it set out earlier this week which included delays at one of its projects in Romania.
Vast also stated that it will be making its next sale of concentrate to its offtake partner in early November. “Production and sales continue in line with revised internal forecasts announced on 25 October 2021,” the company said.
The AIM-quoted firm also announced that directors Andrew Prelea and Roy Tucker have agreed to extend the lock-up period to 15,000,019 and 2,250,057 shares held by them.
The news of the placing has seen Vast shares plunge over 23% to 2.95p. Its shares are down over 77% for the year so far.
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