Vast Resources raises £0.6m for Baita Plai reorganisation

15th Jul 2024 12:09

(Sharecast News) - Vast Resources announced a successful equity placing on Monday, raising £0.6m through the issue of 600 million ordinary shares at a price of 0.1p each, to fund its reorganisation plan at Baita Plai.

The AIM-traded firm said the placing, conducted by Axis Capital Markets, also included a warrant granting the right to subscribe for an additional share at 0.4p, exercisable until 15 July 2025.

It said the proceeds would primarily fund the reorganisation plan at the Baita Plai polymetallic mine, which aimed to reduce production costs and bridge short-term operational expenses while the company awaited the initial tranche of its structural refinancing.

Additionally, the funds would cover near-term corporate obligations and working capital needs.

The new shares would be admitted to AIM in two stages, with the first tranche of 240 million shares expected to begin trading on 19 July, followed by the second tranche of 360 million shares on 30 July.

On the first admission, Vast said its total issued share capital would be 1,448,607,357 shares, increasing to 1,808,607,357 shares following the second admission.

At 1144 BST, shares in Vast Resources were down 34.29% at 0.11p.

Reporting by Josh White for Sharecast.com.