11th Apr 2019 17:20
LONDON (Alliance News) - Vast Resources PLC on Thursday said it is expecting term sheets for the loan finance needed to bring its polymetallic Baita Plai mine in Transylvania into production.
Shares in Vast Resources closed up 6.7% at 0.15 pence on Thursday.
The loan finance is to be provided by undisclosed financial institutions. The miner is also in discussions with a possible cornerstone equity investor who has "expressed a definite interest to proceed in principle".
Both the financial institutions and equity investor require Vast Resources' shareholders to pass a resolution in order to go ahead with funding. The resolution approves a restructuring of Vast Resources via the sale of its interest in the Pickstone Peerless gold mine, as well as other gold assets in Zimbabwe.
Due diligence and legal agreements are also required before funds for Baita Plai can be secured. Vast Resources will also use the money for working capital.
Vast Resources also provided an update on its proposed diamond mining joint venture in Zimbabwe concerning the Heritage concession. A joint venture agreement between Vast Resources and Chiadzwa Community Development Trust has now reached the advances draft stage.
Once the agreement is signed, operations at the concession can begin immediately on the ground.
Related Shares:
Vast Resources