Rns out - alternative funding on wa21 Jan 2019 07:04
Vast Resources plc, the AIM listed mining company with operating mines in Romania and Zimbabwe, announces that further to Friday?s announcement regarding Mercuria Energy Trading SA (?Mercuria?) not proceeding with the advance of the Tranche B of US$5.5m under its prepayment agreement with the Company, the Directors, as a standby measure, have already been in discussions with other off take partners but had been unable to progress these discussions while Mercuria was expected to proceed with Tranche B. Now that Mercuria has informed the Company that Tranche B will not proceed, the Directors will advance these other discussions with a view to securing replacement off take prepayment finance.
Some initial due diligence has already been in process by other potential off-take partners, a non-binding indicative term sheet has been received and others are promised very shortly. Legal work will commence shortly, and it is anticipated that the process will not be protracted as the Board believes the technical and legal due diligence that has already been performed on Baita Plai is robust and can be used to accelerate the process of securing off take prepayment finance.
Amicable discussions are in process with Mercuria on the future relationship between Mercuria and the Company with regard to off take from Manaila and the obligations of the Company with regard to Tranche A prepayment finance of US$4m already advanced. The Company will update the market on the result of these discussions as soon as agreement is reached.