LONDON (Alliance News) - Vast Resources PLC said Monday it has received a draft indicative term sheet from an unnamed Swiss bank for a loan of up to USD10 million to finance the company's Romanian projects.
Shares in the AIM-listed mining and resource development company closed up 7.5% at 0.17 pence each.
The financing is needed to bring its polymetallic Baita Plai mine in Transylvania into production.
The loan will include the full repayment of the USD4 million owed to the company from partner Mercuria Energy Trading SA.
"Whilst we have been in discussions with possible financing institutions for some time, the restructuring of the balance sheet and the recent disposal of our Zimbabwe gold assets enables us to shift focus towards near term cash flow projects - Baita Plai and the Heritage diamond concession - that are under our more direct management, and has opened up the opportunity to pursue more traditional lending media," said Chief Executive Andrew Prelea.
He added: "Whilst I understand the frustration of shareholders over the course of the past few months, management has been working hard to enable the company to react as quickly as possible now that we have the possibility to obtain more traditional lending."
Vast Res (VAST)