(Alliance News) - Vast Resources PLC on Tuesday said it reached an agreement with Atlas Special Opportunities LLC regarding its bond conversion notice.
Vast will issue 241.8 million shares for 0.27 pence each to trading on or around Tuesday next week.
"Following this conversion, Atlas no longer has any conversion or any right to call for the issue of Vast ordinary shares and Vast has no further financial obligations in respect to Atlas", Vast explained.
Last Thursday, Vast said it was seeking legal advice following Atlas's conversion notice for USD800,000 after Vast announced it had repaid all its outstanding debt to London-based Atlas.
Following the issuance, Vast's capital will consist of around 1.00 billion ordinary shares, the London-based miner with projects in Romania and Zimbabwe added.
Tuesday's announcement finalises Vast's refinancing of a bond facility from Atlas that it signed for USD15.0 million in October 2019. The debt deal was with Atlas Capital Market Ltd, a joint venture of Atlas Special Opportunities and New York-based Arena Investors LP.
In addition, Vast on Tuesday issued an update regarding its Tajikistan business at Takob mine.
Vast, through its joint venture subsidiary, has agreed a memorandum of understanding with open joint stock company Talco. The memorandum covers processing tailings at Takob. Vast's joint venture partner, Formin TJK, has started to survey, soil sample and preliminarily drill on site at the tailings facility.
Central Asia Minerals and Metals Ore Trading FZCO will provide up to USD20 million in funding for this project, Vast said. Central Asia Minerals already funds Vast's existing Takob Joint Venture Project announced on May 3, Vast added.
Vast Resources shares were 10% lower at 1.08 pence each in London on Wednesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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