RE: Dear knowledgeable ones22 Jan 2020 13:23
The Directors believe the facility with Atlas offers full funding to
reach production at the Company's Baita Plai Polymetallic Mine in
Romania ("Baita Plai") and at the Chiadzwa Community Diamond concession
in Zimbabwe (the "Diamond Concession"), and subsequently to generate
positive cash flow for the Company. This facility does not affect the
Company's continuing process with the Swiss Bank or other funders, and
the Company's intention is to continue its efforts in securing a
long-term financing facility for Baita Plai and its other Romanian
assets.
Details of the Bonds:
-- The Bonds are issued at 90 per cent of their par value, bear a coupon of
five per cent per annum and have a maturity date of two years from the
date of each issuance providing net proceeds to Vast of up to $13.5
million.
-- The proceeds will be used for bringing Baita Plai and the Diamond
Concession into production, and also US$1 million in repayment to
Mercuria under an intercreditor agreement and up to US$1 million in
repayment of Sub-Sahara Goldia Investments.
-- The Bonds will be issued in four tranches in accordance with cashflow
requirements and subject to specific conditions precedent including and
not limited to the Company holding a General Meeting to grant authority
for the issue of sufficient share capital for securing the facility.
-- The amount of each tranche is as follows:
Tranche Par amount
------- ---------------------
First US$7,101,947 in Bonds
Second US$4,467,354 in Bonds
Third US$2,061,856 in Bonds
Fourth US$1,368,843 in Bonds
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