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Vast raises £600,000 for project development

Vast Resources has raised £600,000 (US$784,737) before costs through a placing and subscription, with half to be used to fund the Baita Plai polymetallic mine in Romania and the other half for the exploration and mining of diamonds at the Heritage Concession in Zimbabwe.
Vast raises £600,000 for project development Vast raises £600,000 for project development Vast raises £600,000 for project development Vast raises £600,000 for project development Vast raises £600,000 for project development

Vast has raised funds for the second time this year

Staff reporter

The placing and subscription involved a total 444.4 million ordinary shares at a price of 0.135p each, with 407.4 million as part of the placing.

Of the 37 million shares in the subscription, 7.4 million were taken up by CEO Andrew Prelea and 29.6 million by director Roy Tucker, bringing their shareholding in the company up to 0.49% and 0.88%, respectively.

Vast (AIM:VAST) has applied for the shares to be admitted to trading on AIM, with trading expected to start on or around April 17. 

Following the admission, Vast's total issued share capital will be 7.9 billion shares. 

Vast's shares dropped 7.35% on the news to 0.14p. The company's shares have lost halved in value since the start of the year.

Vast previously raised £896,000 in February to pay off a December loan and keep the business running while it looked for long-term project financing options after backer Mercuria Energy Trading pulled out of a financing worth US$5.5 million in January.

Earlier this week, Vast decided to dispose of its 25.01% interest in the Pickstone Peerless and Eureka mines in Zimbabwe to focus on the Heritage Concession and Baita Plai.