February 6 (SeeNews) - UK-based mining company Vast Resources said on Monday that it has raised £2.38 million ($2.9 million/2.7 million euro) from investors to finance operations at its Baita Plai polymetallic mine in northwestern Romania and clear some of its corporate obligations.
The funds were raised through a placing and subscription of some 433.2 million ordinary shares of 0.1 pennies in the company at a price of 0.55 pennies per share, Vast Resources said in a press release.
The cash raised will be mainly used to fund the drilling programme and to ramp up production at the Baita mine, but will also enable the company to clear some of its current corporate obligations and reduce its creditor position. This also includes a debt reduction payment to global energy products and commodities trader Mercuria Energy Trading.
The company said that the Baita Plai mine is on track to reach a projected nameplate capacity of 14,000 tonnes per month in the first half of 2023, following a strong performance in the fourth quarter of 2022.
The capital raise was undertaken by Vast Resources’ joint broker Axis Capital Markets in addition to participation from Shore Capital Stockbrokers and Vast's CEO Andrew Prelea, who subscribed for 15 million company shares for a total £82,500.
Vast Resources is a United Kingdom, AIM-listed mining company with mines and projects in Romania and Zimbabwe. Its Romanian portfolio includes 100% interest in the Baita Plai polymetallic mine, located in the Apuseni Mountains, Transylvania.
In September, Vast Resources raised £656,000 from investors to finance operations at the Baita Plai mine until its next sale of copper concentrate in the second half of the following month, the company said in a press release at the time.
(GBP=1.1212 euro)