Vast Resources raises £1.35m to cover working capital shortfall

Mining company Vast Resources has raised gross proceeds £1.35m gross through a placing, it announced on Thursday, to cover a shortfall in working capital.

The AIM-traded firm said the funds were raised via the placing of 54 million ordinary shares at a price of 2.5p each.

It said the placing was undertaken by its joint broker, Axis Capital Markets.

“The net cash raised from the placing will cover the shortfall in working capital [as] set out in the company’s announcement on 25 October, and for contingencies,” the board said in its statement.

“The company would like to confirm it will be making its next sale of concentrate to its offtake partner in early November.

“Production and sales continue in line with revised internal forecasts announced on 25 October.”

Vast Resources also announced that Andrew Prelea and Roy Tucker, directors of the company, had agreed to extend the lock-up period in relation to the 15,000,019 and 2,250,057 ordinary shares respectively held by them by a further year, until 30 November 2022.

At 1116 BST, shares in Vast Resources were down 24.73% at 2.9p.