Vast Resources raises £0.9m via placing and subscription

Vast Resources has raised a total of £0.9m before costs, it announced on Monday, through a placing and a subscription of 600,944,440 ordinary shares at a price of 0.15p each.

The AIM-traded firm said the placing was for 570,944,440 ordinary shares and was undertaken by its joint broker, Axis Capital Markets.

It said the subscription, meanwhile, was for 30,000,000 ordinary shares, of which 23,333,333 were taken up by Andrew Prelea and 6,666,667 were taken up by Paul Fletcher, both directors of the company.

The cash raised from the placing and subscription would be applied to provide immediate funding of the costs of accelerating and expanding the company’s drilling and metallurgical test work process, and for general working capital.

“As a consequence of the recently released metallurgical test results, the board and management felt that it was prudent to accelerate further test work and reports on the Baita Plai project to enhance its value for the refinancing opportunity,” said chief executive officer Andrew Prelea.

“With the newly commissioned reports, expanded drilling and accelerated test work, the intention is to achieve a greater asset value to shareholders, in turn providing better long-term shareholder value.

“We look forward to updating the market with updates related to financial negotiations and the further test results as they occur.”

At 0857 BST, shares in Vast Resources were down 0.73% at 0.16p.