Vast Resources obtains cornerstone investor

Vast Resources secured fresh capital from a US-based family office to help raise production at its two polymetallic mines in Romania and to help fund new projects.

AIM-listed Vast Resources was set to receive up to £5m in fresh equity from Crede Capital in four equal tranches, the first of which was delivered on Monday.

Roy Pitchford, Chief Executive Officer of Vast, commented: "Securing a long term, cornerstone investor has been a requirement of the Company since its transition from a junior explorer to a mine operating company. The funding from Crede Capital will facilitate increasing production at Manaila, the potential increase in open cut ore resources, the re-commissioning of Baita Plai and its eventual expansion, and funding for new projects.”

The second, third and fourth tranches would take place at 90-day intervals conditional on an investment of £0.5m by Vast’s directors, senior executives or consultants.

Commissioning of the second milling and flotation circuit at Vast’s Manaila polymetallic mine was now planned.

Once the third mill was commissioned the company would be able to increase output from its then current rate of 10,000 tonnes of ore mined and processed per month to the 20,000 tonne limit of installed capacity.

Vast also said it would commence work on re-opening its Baita Plai polymetallic mine ahead of the anticipated granting of a licence in the near future.

Shares of Vast Resources finished the session 12.71% higher at 0.94p, giving it a market capitalisation of £18.66m, after earlier having risen by about 25%.