By Kyle Morris
Shares of Vast Resources PLC traded up 57% on Monday after the company said it had raised 3.2 million pounds ($3.9 million) through a contingent subscription and placement, and that it had secured a $4 million asset-backed credit facility.
The AIM-listed mining company also said it had fully repaid outstanding bonds owed to Atlas Special Opportunities LLC. As such, Atlas no longer has any conversion or right to call for the issuance of Vast shares.
Vast Resources shares at 0907 GMT were up 0.47 pence, or 57%, at 1.30 pence.
The subscription and placement consisted of 463.3 million new ordinary shares at a price of 0.7 pence per share. The subscription and placement are subject to shareholder approval of the necessary resolutions which are expected to be sought at a general meeting on June 6.
A&T Investments has made an advance payment of $1.1 million for a new issue of common stock under the subscription, subject to approval. Shore Capital, the company’s co-broker, also participated in the underwriting.
Proceeds from the subscription and placement will be used to repay Atlas over $4.0 million and for a debt reduction of $1.0 million with Mercuria Energy Trading SA. The remaining funds will be invested in the optimization of the Baita Plai polymetallic mine in Romania.
“The successful redemption of Atlas marks a definitive turning point for the company which the board believes should restore fair value to our share price. As explained in our May 3 operations update, the work of investment and development undertaken in Baita Plai over the past few months together with the new revenue streams introduced as a result of our interests in Tajikistan are already reshaping our financial performance, and today’s refinancing will, in our view, ensure that these gains translate into real returns for shareholders,” the company said.
Write to Kyle Morris at [email protected]