May 18 (SeeNews) - UK-based Vast Resources said on Monday that it has raised 901,417 British pounds ($1.09 million/1.01 million euro) to support the further development of its Baita Plai polymetallic project in Romania.
The cash raised will be used to finance costs of accelerating and expanding the company’s drilling and metallurgical test work process at Baita Plai and for general working capital, the company said in a press release.
Vast Resources has raised the fresh funding by a placing and a subscription of 600,944,440 new ordinary shares of 0.10 pence apiece at a price of 0.15 pence per share.
‘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," CEO Andrew Prelea said.
"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."
Prelea and director Paul Fletcher subscribed for 30 million of the newly issued shares.
Vast Resources announced on May 12 that grades from metallurgical test work on producing copper concentrate at Baita Plai are greater than originally forecast.
The company’s Romanian portfolio includes an 80% interest in the Baita Plai polymetallic mine and the Manaila polymetallic mine, which was commissioned in 2015, currently on care and maintenance.
(1GBP =1.1285 euro)