Vast Resources plc Conditional Heads Of Terms For Us$10 Million Investment
July 24 2017 - 3:30AM
UK Regulatory
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
24 July 2017
Vast Resources plc
("Vast" or "the Company")
Conditional Heads of Terms for US$10 million Investment
Vast Resources plc, the AIM-listed mining company with operations in
Romania and Zimbabwe, is pleased to advise shareholders that it has
entered into a conditional heads of terms relating to a proposed
investment of up to US$10 million in Vast ('the Proposed Investment') by
a corporate finance and investment firm with significant experience in
and investment in Romania (the 'Investor').
The Proposed Investment is also subject to the rights of Sub-Sahara
Goldia Investments ('Sub-Sahara') pursuant to its US$4 million loan to
the Company as announced on 30 January 2017 which has a right to provide
equivalent finance to the Proposed Investment if the terms and
conditions are the same.
The Proposed Investment is in two stages, US$8 million at Stage 1 and an
additional US$2 million at Stage 2. Stage 1 is a direct subscription by
the Investor for new shares in Vast Resources Romania Ltd ('VRR') which
company will hold all Vast's Romanian assets and would result in the
Investor holding 51% of VRR. Stage 2 would result in the subscription
by the Investor for a nominal number of further shares in VRR followed
immediately by the acquisition of the Investor's entire holding in VRR
by Vast for the issue of ordinary shares in Vast at 0.4p per share and
which, depending on exchange rate fluctuations and share issues through
warrant exercises, is estimated to give Investor approximately 29% of
the enlarged share capital of Vast.
Stage 2 will require the passing of an ordinary resolution at a General
Meeting of Vast.
The funds raised must be used for the Company's capital expenditure and
working capital requirements, mostly for the expansion of the Romanian
operations. Subject to Stage 2 being completed there is also an
allocation of funds for costs in connection with the possible demerger
of the Zimbabwe assets from the Company.
The Proposed Investment and its Stages are subject to preconditions of a
standard nature including the completion of the Investor's due diligence
and the procurement of the release of Sub-Sahara's security over the
Company's non-Zimbabwe assets. For Stage 2 specific conditions include;,
(1) that Vast can legally procure the payment of a dividend from
Breckridge (Pvt) Limited ('Breckridge'), the owner of the Pickstone
Peerless Gold Mine in Zimbabwe, subject to there being distributable
profits in Breckridge, and (2) that Vast can procure to the satisfaction
of the Investor the visibility of dividend payments by Breckridge and or
payment from funds in Breckridge to Vast of an appropriate proportion of
general administrative costs of Vast following completion of the
Proposed Investment.
The Proposed Investment is subject to agreement and signing by all
relevant parties of necessary documentation, including a detailed
subscription and shareholders' agreement and the provision to the
Investor of customary warranties and representations appropriate to the
Proposed Investment relating to the Company, its business, assets and
liabilities.
Roy Pitchford, Chief Executive of Vast, commented:
"The Proposed Investment by a strategic investor of up to US$10 million
should enable us to execute our strategic objectives in Romania, and I
look forward to providing further updates as appropriate as this process
continues."
**ENDS**
For further information, visit www.vastresourcesplc.com or please
contact:
Vast Resources plc www.vastresourcesplc.com
Roy Pitchford (Chief Executive Officer) +44 (0) 20 7236 1177
Beaumont Cornish - Financial & Nominated Adviser www.beaumontcornish.com
Roland Cornish +44 (0) 020 7628 3396
James Biddle
Brandon Hill Capital Ltd - Joint Broker www.brandonhillcapital.com
Jonathan Evans +44 (0) 20 3463 5016
Peterhouse Corporate Finance Ltd - Joint Broker www.pcorpfin.com
Duncan Vasey +44 (0) 20 7469 0936
St Brides Partners Ltd www.stbridespartners.co.uk
Susie Geliher +44 (0) 20 7236 1177
Charlotte Page
The information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 ("MAR").
Notes
Vast Resources plc is an AIM listed mining and resource development
company focussed on the rapid advancement of high quality brownfield
projects and recommencing production at previously producing mines in
Romania.
Vast Resources currently operates the Manaila Polymetallic Mine in
Romania, which was commissioned in 2015. The Company's portfolio also
includes the Baita Plai Polymetallic Mine in Romania, where work is
currently underway towards obtaining the relevant permissions to start
developing and ultimately commissioning the mine.
The Company also has interests in a number of projects in Southern
Africa including a 25.01 per cent. interest in the producing
Pickstone-Peerless Gold Mine in Zimbabwe.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Vast Resources plc via Globenewswire
http://www.acrplc.com/
(END) Dow Jones Newswires
July 24, 2017 03:30 ET (07:30 GMT)
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