vast16 May 2022 15:28
Vast Resources PLC (AIM:VAST) said it repaid in full the outstanding bonds owed to Atlas Special Opportunities LLC following a subscription and placing, lifting the mining company’s shares up as much as 81%.
The repayment means Atlas no longer has any conversion or any right to call for the issue of Vast ordinary shares, thus removing share dilution concerns.
"The successful repayment of Atlas marks a definitive turning point for the company that the board believes should restore fair value in our share price,” said chief executive Andrew Prelea.
The AIM-traded company said it had also undertaken to pay back US$1.0mln of debt owed to Mercuria Energy Trading SA and plans to repay the entire debt owed to Mercuria on or before May 15, 2023.
Vast has secured a US$4.0mln asset-backed debt facility from A&T Investments SARL, arranged by Swiss investment bank Alpha Credit SA, and raised a total £3.24mln before costs through a conditional subscription and placing of about 463mln new shares at 0.7 pence each.
The funds raised from the subscription and placing will be used to settle the balance of debt to Atlas over US$4.0mln and the agreed debt reduction commitment to Mercuria as well as to support the continued optimisation of Vast’s Baita Plai polymetallic mine in Romania.
Shares in Vast soared as high as 81% to 1.5 pence following the announcement and were up 63% at 1.35p in mid-morning trade.