LONDON (ShareCast) - (Sharecast News) - Vast Resources announced on Thursday that it has raised £2m through a share placing to strengthen its balance sheet, repay part of its debt, and advance preparations to restart operations at its Romanian mines.
The AIM-traded mining company said it placed 1.11 billionn new ordinary shares at 0.18p each, with the transaction carried out by joint broker Axis Capital Markets.

It said the placing would complete in two tranches, with admission of the new shares to trading on AIM expected around 29 October and 6 November.

Proceeds would be used to repay $1m of debt owed to Alpha and Mercuria, securing extensions to their loans and enabling the company to access proceeds from the sale of diamonds to settle remaining obligations.

The funds would also support technical and operational due diligence at the Baita Plai and Manaila mines as Vast progressed new offtake financing and joint venture agreements.

Vast said the additional cash would bolster its position ahead of finalising annual accounts, as it awaited proceeds from the sale of a historic diamond parcel due to be tendered on 17 November.

Following completion of both tranches, Vast's total issued share capital would increase to 4.99 billion ordinary shares.

At 1131 BST, shares in Vast Resources were down 21.46% at 0.21p.

Reporting by Josh White for Sharecast.com.

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