4th Jan 2016 08:20
LONDON (Alliance News) - Vast Resources PLC on Monday said it has entered into a subscription agreement with Crede CG III Ltd under which it will raise GBP5.0 million.
Vast, which owns mining projects in Romania and Zimbabwe, will issue four tranches of 156.3 million shares at 0.8 pence per share to Crede to raise the funding. Each of the issues will occur at 90-day intervals, with each tranche to raise GBP1.25 million apiece.
Vast shares were trading up 15% to 0.920p on Monday morning.
The subscription on the second, third and fourth tranches to be issued to Crede will be dependent on an investment being made by Vast's directors and senior executives, more details of which will be provided in coming days, the company said. The directors and executives will have to subscribe for GBP500,000 worth of shares.
Crede Capital, which runs the fund, is a US-based family office which invests in emerging European companies.
Vast said the funding will be used for working capital purposes as it continues work on developing its producing mining assets.
"Securing a long term, cornerstone investor has been a requirement of the company since its transition from a junior explorer to a mine operating company. The funding from Crede Capital will facilitate increasing production at Manaila, the potential increase in open cut ore resources, the re-commissioning of Baita Plai and its eventual expansion, and funding for new projects," said Vast Chief Executive Roy Pitchford.
By Sam Unsted; [email protected]; @SamUAtAlliance
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