Vast Share Price Fell 11.2% on £1.7M Discounted Capital Raise

The Vast Resources PLC (LON: VAST) share price fell 11.2% after revealing that it had raised £1,701,000 gross by placing 486,000,000 ordinary shares priced at 0.35p per share. The Placing was undertaken by the Company’s joint broker, Axis Capital Markets Ltd.

The decline in Vast shares was expected, given the discount offered to the investors who participated in the placing. Usually, the markets adjust the price of a company’s shares if it issues new shares at a discounted price.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The mining company said that it would use the proceeds of the capital raise for working capital purposes to ensure that it can meet its corporate obligations in Romania and at a corporate level. The company also said the funds would bridge unforeseen operational costs and fund further expansion capital costs. 

The funds raised will also fund the ongoing drilling programme and mine development costs at the Company’s Baita Plai Polymetallic Mine in Romania. The company also issued an update regarding recovering the historic parcel from the Reserve Bank of Zimbabwe (RBZ). 

Vast Resources noted that it is still liaising with the appropriate organisations, including the Deputy Sheriff, about the uplift of the parcel from the RBZ, its valuation and handover to the company from the RBZ. 

The process is ongoing, and Vast expects to receive the historic parcel in due time once all the procedures relating to its handover are completed. For example, the Deputy Sheriff was instructed to uplift the parcel under a writ of execution issued out of the High Court of Zimbabwe on 14 June 2023.

The RBZ requested clarity regarding the order to uplift the parcel, which was again issued by the High Court on 29th June 2023, allowing the DEputy Sheriff to proceed with the uplift. 

The Deputy Sheriff agreed that the RBZ would confirm, in writing, the process that would define the procedures for the orderly and secure handover of the parcel to the Company, which includes the procedure for valuation for royalty purposes, export permits and Kimberly Process Certification.

*This is not investment advice. 

Vast share price. 

The Vast share price fell 11.16% to trade at 0.3598p, from Thursday’s closing price of 0.4050p.