(Alliance News) - Vast Resources PLC on Wednesday said it continues to progress towards drawdown of the first tranche of a funding facility, with the completion expected before the year-end.
At the end of October, the AIM-listed mining & resource development company said it had signed a binding conditional bond issue deed for up to USD15 million. The bonds were agreed to be issued to UK-based fund Atlas Capital Markets Ltd.
The bonds were agreed to be issued in four tranches - USD7.1 million, USD4.5 million, USD2.1 million and USD1.4 million - in accordance with Vast's cashflow requirements and subject to specific conditions.
At the time, Vast said the facility with Atlas offered it full funding to reach production at the Baita Plai polymetallic mine in Romania and at the Chiadzwa Community diamond concession in Zimbabwe, and subsequently to generate positive cash flow.
"The bonds provide the required capital to enable the company to bring its two core assets, Baita Plai in Romania and the diamond concession in Zimbabwe, into production," said Vast Chief Executive Andrew Prelea.
Vast shares were trading 0.4% higher in London on Wednesday at 0.26 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Vast Res (VAST)