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(Alliance News) - Vast Resources PLC on Monday said it raised GBP2.4 million through a placing of 433.2 million new shares at 0.55 pence per share.
The London-based mining company with projects in Romania and Zimbabwe said the cash raised from the placing will be used on its ongoing drilling programme and production ramp-up at the Baita Plai polymetallic mine in Romania.
The company noted that Baita Plai is moving towards its name plate capacity of 14,000 tonnes per month in the first half of 2023, after seeing strong production and sales in the fourth quarter of 2022.
The project "continues to exceed projections", Vast Resources said.
Vast Resources added that it is looking to obtain a mineral reserve, and increase its measured and indicated resource - particularly it aims to confirming the enlarged exploration target of 5.8 million tonnes with grades of 0.5% to 2.0% copper, 0.20 to 0.80 grammes of gold per tonne and 40 to 80 grammes of silver per tonne.
The funds raised will also be used to reduce its creditor position, including a debt reduction payment to Mercuria Energy Trading SA, Vast Resources noted.
The company's chief executive officer, Andrew Prelea, participated in the placing, subscribing to 15.0 million shares worth GBP82,500.
Vast Resources shares were down 1.5% trading at 0.64 pence per share on Monday morning in London.
By Harvey Dorset, Alliance News reporter
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