January 7 (SeeNews) - UK-based Vast Resources Vast Resources said on Thursday that it has not been able to secure an asset-backed debt-financing process for its Baita Plai polymetallic mine in Romania.
Vast Resources has been informed by the international banking institution that the credit committee is unable to proceed with the approval of transaction until the completion of certain corporate restructuring at which point the bank will reassess the transaction, it said in a press release.
"The company has been given to understand that this decision is unrelated to its current mining activity and is not a negative reflection on the company's Baita Plai polymetallic mine," Vast Resources also said in the statement.
The company added that it is considering a restructuring and rationalisation of its corporate structure that will enable investors to have a variable exposure to different elements of the current business, both commodity and jurisdictional.
Vast Resources also said that it remains well funded following the 4.85 million pounds ($6.5 million/5.3 million euro) placing completed in December and is making solid progress with the ramp up to full production at the Baita Plai polymetallic mine.
Vast Resources was expecting to complete the asset-backed debt-financing process by the end of December.
The company announced in September that it is negotiating a debt financing facility with an unnamed international banking institution.
Vast Resources is an AIM-listed mining company with mines and projects in Romania and Zimbabwe. The company’s Romanian portfolio includes an 100% interest in the Baita Plai polymetallic mine and the Manaila polymetallic mine, which was commissioned in 2015 and is currently on care and maintenance.
(1 British pound=1.1075 euro)