Earlier this month, the group started full-scale commercial zinc production at its Manaila polymetallic mine in Romania and funds from the subscription, among other things, will go to ongoing refinement to the zinc production line and drilling to expand the maiden JORC resource at Manaila.
Bracknor has subscribed for US$2mln of notes, which are interest free and can be converted into Vast shares at any time for 12 months
Vast Resources PLC has struck a convertible loan deal with Bracknor Fund Limited, which provides it with sufficient cash to advance its resource assets in Romania and Zimbabwe.
Bracknor has subscribed for US$2mln of notes, which are interest free and can be converted into Vast shares at any time for a year at a price equal to 90% of the lowest average price in the prceeding five days.
The fund has also committed to subscribe over two years for a further US$3 mln of notes in three tranches ofUS$1mln should Vast so wish. There are warrants attached.
Vast chief executive Roy Pitchford said: “This facility, combined with the surplus cash being generated at Pickstone-Peerless and the improved performance of the Manaila Mine, is expected to provide sufficient funding for the company to have two income generating mines in Romania, an income generating mine in Zimbabwe and sufficient funding to evaluate a second mine in Zimbabwe.
He said if the firm chose to draw down in full, it would only have to call on shareholders for for additional capital if additional new value accretive projects were being acquired by Vast.
Earlier this month, the group started full-scale commercial zinc production at its Manaila polymetallic mine in Romania and funds from the subscription, among other things, will go to ongoing refinement to the zinc production line and drilling to expand the maiden JORC resource at Manaila.
source: proactiveinvestors.co.uk
