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Vast Resources plc release placing to raise £656,000 and Baita Plai operational update

Vast Resources plc, the AIM-listed mining company, announces a financial and operational update which includes the raising of £656,000 gross through a placing (the ‘Placing’) of 164,000,000 ordinary shares of 0.1p in the Company (‘Ordinary Shares’) at a price of 0.40p per Ordinary Share (the ‘Placing Shares’). The Placing was undertaken by the Company’s joint broker, Axis Capital Markets Ltd.

The net cash raised from the Placing will ensure the Company’s operations continue to be supported over the coming weeks as a consequence of a delay in exporting its latest concentrate shipment, due to shipping availability as well as the start of the underground production ramp up occurring later in Q3 2022 than originally anticipated, resulting in a requirement for additional working capital. The Company would like to confirm that its next concentrate sale from Baita Plai is now expected in the first half of October.

The Company expects to publish its Q3 Production Report before the end of October, which is still expected to reveal a significant increase in Baita Plai’s production profile from that reported in Q2 2022. Sales volumes are also expected to continue to increase from October onwards as a result of underground production increasing as a result of the first Long Hole Stope blasting that commenced from the beginning of September via the already installed and operational Mantis Jumbo Drilling Rigs.

Admission of the Placing Shares & Total Voting Rights

Application will be made to AIM for the Placing Shares, which will rank pari passu with existing Ordinary Shares, to be admitted to trading on AIM (‘Admission’). It is expected that Admission will become effective and dealing will commence on or around 29 September 2022. Following Admission, the total issued share capital of the Company will be 1,629,643,324. The Company does not hold any Ordinary Shares in Treasury and accordingly the above figure of 1,629,643,324 may then be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in Vast under the FCA’s Disclosure and Transparency Rule.

Andrew Prelea, Chief Executive Officer of Vast, commented: “Our progress at Baita Plai continues and we are consistently improving our production volumes. This progress was achieved from the beginning of September, with the introduction of long hole stope mining, and the benefits of this are being witnessed at the mine as our volumes increase. This is expected to feed through to our Q3 figures and to continue over the remaining months of the year and into 2023. I should like to thank our shareholders for their support in this fundraising as we look to ensure progress at Baita Plai continues despite the temporary shortfall in working capital.”

 

 

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