GCIVast Resources raises £1.7m, expects name plate capacity at Baita Plai in Q3
(), a mining company with projects in Romania, Tajikistan, and Zimbabwe, announced it has raised £1.7m gross through a placing of 486 million shares at 0.35p/share - a 13% discount to Thursday's closing price. The placing was undertaken by Vast's broker Axis Capital Markets.
Vast said it would utilise the cash from the placing for working capital, to ensure it can meet its current corporate obligations in Romania, to bridge any unforeseen operational costs, and to fund further expansion capital costs and the ongoing drilling programme and mine development costs at its Baita Plai polymetallic mine in Romania.
Vast also reiterated its announcement from 4 July regarding the recovery of a historic parcel of 129,400 rough diamonds held in custody at the Reserve Bank of Zimbabwe, following a High Court Order in Vast's favour. The company continues to liaise with the appropriate organisations regarding the procedure for the handover. However as there is no precise timeline for the recovery, the fundraise was necessary to give Vast sufficient liquidity.
Regarding its debt, as previously announced Vast is in discussions with Mercuria Energy Trading SA and Alpha Investments SARL about a further extension on the repayment of debt totalling approx. $8.4m. Vast said it would make a further announcement once discussions have concluded.
The company's flagship Baita Plai Polymetallic asset in Romania is also pending a Q2 2023 production report, expected in the coming weeks, detailing results from its drilling programme. Vast did say that operational breakeven had been achieved in June 2023 and that name plate capacity is now anticipated to be met in Q3 rather than H1 2023.
The latest technical report from Baita Plai was positive, underpinning the potential for a resource upgrade following strong Q4 2022 and Q1 2023 production reports.
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