Vast Resources signs asset-backed term sheet, raises £4.85m

Mining company Vast Resources announced on Wednesday that its term sheet with an unnamed international banking institution had now been agreed between the bank’s executive team and the company.

The AIM-traded firm said it had been submitted for the bank’s final credit committee approval, which was scheduled for 15 December.

It said that, as one of the major conditions precedent to the drawdown, it would be obliged to raise at least a further $6.2m of equity to be invested alongside the bank.

As such, the company said it had raised £4.85m through a placing of 3,671,651,439 ordinary shares, at a price of 0.132p each.

“The asset-backed debt facility is a key corporate and commercial objective for Vast, and one which I believe will prove beneficial for shareholders as we move into 2021,” said chief executive officer Andrew Prelea.

“This is clearly recognised by the new and existing investors who have participated in today’s placing and I believe that this development will provide Vast with the financial optionality to successfully capitalise on the anticipated ramp up to full production at our Baita Plai Polymetallic Mine.”

At 0949 GMT, shares in Vast Resources were down 13.23% at 0.14p.