(Alliance News) Vast Resources PLC on Monday said it repaid all its outstanding bond debt to Atlas Special Opportunities LLC.
Vast Resources shares surged 45% to 1.20 pence each in London on Monday afternoon.
On Friday, the London-based miner with projects in Romania and Zimbabwe said it had outstanding bonds of USD4.2 million. The company on Monday also said it has undertaken a debt reduction of USD1.0 million to Mercuria Energy Trading SA.
Meanwhile, Vast secured a USD4.0 million asset backed debt facility from A&T Investments Sarl, arranged by Swiss investment banking boutique Alpha Credit SA. The miner also raised GBP3.2 million through placing 463.3 million new shares at 0.7p per share, it said.
In a separate announcement which came after the debt repayment release, the firm said it has received a conversion notice of USD800,000 from Atlas. This will result in the issue of 241.8 million shares, Vast explained. "In the light of the full repayment being made by the company to Atlas today as separately announced, the company is considering its position as to its response to this notice and is currently communicating with Atlas," Vast explained.
On Friday, Vast said it issued 153.3 million new ordinary shares at 0.27 pence each, after Atlas chose to convert bonds of USD500,000 nominal value. The issuance represented 20% of the enlarged total. This was despite Atlas in May giving Vast a non-legally binding verbal assurance that it would do no more conversions.
By Tom Budszus; tombudszus@alliancenews.com
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Vast Res (VAST)