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VAST Resources PLC, formerly African Consolidated Resources, says it has raised about $1,14 million through placing shares to fund projects in Zimbabwe and Romania. The Alternative Investment Market listed junior miner said it had placed a total of 300 000 ordinary shares of 0,1 percent subject to shareholder approval later this month.The purpose of the placing is to provide additional working capital to the company after it terminated the equity subscription agreement with Crede CG III Ltd.
Chief executive Mr Roy Pitchford said the company was happy with the strong support from shareholder, but concerned with the performance of the firm’s share.
“We are pleased to see a number of strong and loyal shareholders supporting the company and welcome new shareholders in the placing. “Despite excellent progress from an operational standpoint and production now in place in two countries, the Vast share price has come under significant pressure,” said Mr Pitchford.
VAST Resources has forecast gold output at its Pickstone Peerless Mine will double to 20 000oz in the short term after it invested over $17 million over the last few years. Full mine infrastructure commissioned and came into operation in the first half of last year with gold production from the oxide cap commencing in September 2015.
Vast Resources holds a 50 percent interest in Breckridge Investments, a joint venture between Vast Resources and Grayfox Investments, which holds the remaining stake. Breckridge holds a 100 percent interest in the Pickstone-Peerless Gold Mine, and mining claims surrounding the former Giant Mine, in Zimbabwe.
The placing and subscription of shares provides the board with the flexibility and required time to review a number of alternate financing scenarios, vast resources.
The company has agreed to issue to Brandon Hill Capital Ltd, subject to relevant shareholder authorities, 5 701 754 warrants, being 5 percent of the number of those shares issued under the placing that were introduced by Brandon Hill Capital Ltd.
This entitles it to acquire one new share for each warrant at any time up to June 2019 at an exercise price of 0,285p.
Vast also agreed to issue a further 2,105,263 warrants on similar terms to an introducer of finance under the subscription. It is expected that admission will become effective and dealing in the placing shares and the subscription shares will commence on July 11, 2016.
The placing and subscription shares will rank pari passu with existing Ordinary Shares of Vast.
Following admission, the total issued share capital of the company will be 2 873 037 052 ordinary shares.
The placing and subscription shares together will represent approximately 10,44 per cent of the enlarged share capital of the company.
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