PLACING & UPDATE ON REFINANCING-VAST RESOURCES PLC

PLACING & UPDATE ON REFINANCING-VAST RESOURCES PLC

Placing to raise £616,000 and Update on Structural Refinancing

Operational Update

 

Placing and Update on Structural Refinancing

 

Vast Resources plc, the AIM-listed mining company, announces that it has raised £616,000 gross through a placing (the 'Placing') of 280,000,000 ordinary shares of 0.1p in the Company ('Ordinary Shares') at a price of 0.22p per Ordinary Share (the 'Placing').  The Placing was undertaken by the Company's joint broker, Axis Capital Markets Ltd ('Axis').

 

The net cash raised from the Placing will be used for bridging the short-term gap in operational expenses while the Company awaits the first tranche of the structural refinancing to close (see below), and to cover near-term corporate obligations, and working capital needs.

 

Further to the announcement of 29 April 2024, the Company is pleased to announce that the owner of the Swiss Investment Company confirmed in writing on 13 May 2024 to Vast that he has resolved internal matters relating to the release of Tranche 1 of his proposed investment in the Company, and expects to transfer the funds shortly.  Whilst the Board is reassured by this confirmation and is hopeful of the release of funds, of course there can be no guarantee that this funding will be secured.  Should it not be, the Company would need to make alternative arrangements to meet its obligations as previously announced.

 

Admission of the Placing Shares & Total Voting Rights

 

Application will be made to AIM for the Placing Shares, which will rank pari passu with existing Ordinary Shares, to be admitted to trading on AIM ('Admission') in two tranches.  It is expected that Admission will become effective and dealing will commence in respect of 45,500,000 Shares on or around 21 May 2024 (the 'First Admission') and Admission will become effective and dealing will commence in respect of 234,500,000 Shares, being the balance of the placing shares, on or around 7 June 2024 (the 'Second Admission').  The Placing is conditional on Admission.

 

Following the First Admission, the total issued share capital of the Company will be 974,107,357 and following the Second Admission this will be 1,208,607,357.  The Company does not hold any Ordinary Shares in Treasury and accordingly the above figures of 974,107,357 and 1,208,607,357 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in Vast under the FCA's Disclosure and Transparency Rule.

 

Operational Update

 

Tajikistan - Aprelevka

 

The Company also wishes to announce that further to the announcement of 29 April 2024 Formin has provided Gulf International Minerals Ltd ('Gulf') an updated resource report based on the SRK produced wireframes, collated historic data and the 2019-2022 drilling results (the 'Report').  The full Report is set out in an Appendix to this announcement.  The Report includes an updated MRE under the NAEN standard.

 

As previously announced, Vast has been contracted to develop and manage the Aprelevka gold mines on behalf of its owner Gulf International Minerals Ltd under which Vast is entitled, inter alia, to 10% of the earnings that Gulf receives from its 49% interest in Aprelevka in joint venture with the government of Tajikistan.  As part of its arrangements, Vast is entitled to a right of first refusal to convert its profit share entitlement into an equity interest of 10% in Gulf at any time from 1 January 2025 to 15 January 2027, and represents a 4.9% indirect net attributable interest in the resources set out in the MRE below.

 

The following is the text of the Executive Summary of the Report:

 

"Introduction

 

Formin SA has been requested by Gulf International Minerals Ltd to prepare a digitization of historical data, provide a 3D geological model and a resource evaluation, for Aprelevka Mine located in the Northern part of Tajikistan.

 

Property Description

 

The Aprelevka deposit consists of two pits, is about 70km by road to the east of Kansai, and was classified by the Soviets as a centralized vein system of primarily quartz‐carbonate composition.

 

Ore description and Resource estimation

 

The ore is represented by 3 main quartz veins with a high grade of gold and silver.

 

The resource estimate results are presented below:

 

 

Measured

Vein 1

2.80

473,418.8

3.03

17.11

1.43

8.10

Vein 2

2.80

467,687.5

4.41

41.37

2.06

19.35

Vein 3

2.80

297,605.0

2.38

36.85

0.71

10.97

Total

2.80

1,238,711.3

3.39

31.01

4.20

38.42

 

 

Indicated

Vein 1

2.80

276,062.5

3.12

16.65

0.86

4.60

Vein 2

2.80

300,483.8

3.88

35.27

1.17

10.60

Vein 3

2.80

168,910.0

2.52

42.05

0.43

7.10

Total

2.80

745,456.3

3.29

29.91

2.45

22.30

 

 

Inferred

Vein 1

2.80

386,715.0

3.47

18.63

1.34

7.20

Vein 2

2.80

559,037.5

4.06

38.64

2.27

21.60

Vein 3

2.80

188,921.3

2.55

51.12

0.48

9.66

Total

2.80

1,134,673.8

3.61

33.90

4.09

38.46

 

 

Total

Vein 1

2.80

1,136,196.3

3.20

17.52

3.64

19.90

 

Vein 2

2.80

1,327,208.8

4.14

38.84

5.50

51.55

 

Vein 3

2.80

655,436.3

2.47

42.30

1.62

27.73

 

Total

2.80

3,118,841.3

3.45

31.80

10.75

99.18

"

 

Report Signatories

 

Vlad Andrei Negru, who has signed the report on behalf of Formin, is a 'Certified Person' from the National Agency for Mineral Resource in Romania.  He is a geologist with more than 12 years' experience in Mineral Resource estimation.  He has worked for a large number of projects in Romanian and also as an SRK consultant.  Mr Negru consents to the inclusion of his name in this announcement in the form and context to which it appears.

 

PGM Marketing contract

 

The Company wishes to confirm that four (4) tons of PGM concentrate has been prepared to depart to Nikash in Dubai to separate the contained PGMs.  Once separation of the contained metals is complete, the Company will receive payment for this first shipment in accordance with the marketing agreement as announced on 22 January 2024.  It is not possible to estimate the amount of any such payment until the minerals involved have been smelted and values established.

 

Important Notices

This announcement contains 'forward-looking statements' concerning the Company that are subject to risks and uncertainties. Generally, the words 'will', 'may', 'should', 'continue', 'believes', 'targets', 'plans', 'expects', 'aims', 'intends', 'anticipates' or similar expressions or negatives thereof identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.  Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely. The Company cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. The Company does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required.

 

Market Abuse Regulation (MAR) Disclosure

 

Certain 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 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR") until the release of this announcement.

 

**ENDS**

 

For further information, visit www.vastplc.com or please contact:

 

Vast Resources plc

Andrew Prelea (CEO)

 

www.vastplc.com

+44 (0) 20 7846 0974

Beaumont Cornish - Financial & Nominated Advisor

Roland Cornish

James Biddle

 

www.beaumontcornish.com

+44 (0) 20 7628 3396

Shore Capital Stockbrokers Limited - Joint Broker

Toby Gibbs / James Thomas (Corporate Advisory)

 

www.shorecapmarkets.co.uk

+44 (0) 20 7408 4050

Axis Capital Markets Limited - Joint Broker
Richard Hutchinson

 

www.axcap247.com

+44 (0) 20 3206 0320

St Brides Partners Limited

Susie Geliher

www.stbridespartners.co.uk

+44 (0) 20 7236 1177

 

ABOUT VAST RESOURCES PLC

 

Vast Resources plc is a United Kingdom AIM listed mining company with mines and projects in Romania, Tajikistan, and Zimbabwe.

 

In Romania, the Company is focused on the rapid advancement of high-quality projects by recommencing production at previously producing mines.

 

The Company's Romanian portfolio includes 100% interest in Vast Baita Plai SA which owns 100% of the producing Baita Plai Polymetallic Mine, located in the Apuseni Mountains, Transylvania, an area which hosts Romania's largest polymetallic mines. The mine has a JORC compliant Reserve & Resource Report which underpins the initial mine production life of approximately 3-4 years with an in-situ total mineral resource of 15,695 tonnes copper equivalent with a further 1.8M-3M tonnes exploration target. The Company is now working on confirming an enlarged exploration target of up to 5.8M tonnes.

 

The Company also owns the Manaila Polymetallic Mine in Romania, which the Company is looking to bring back into production following a period of care and maintenance. The Company has also been granted the Manaila Carlibaba Extended Exploitation Licence that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.

 

The Company retains a continued presence in Zimbabwe.

 

Vast has an interest in a joint venture company which provides exposure to a near term revenue opportunity from the Takob Mine processing facility in Tajikistan.  The Takob Mine opportunity, which is 100% financed, will provide Vast with a 12.25 percent royalty over all sales of non-ferrous concentrate and any other metals produced.

 

Also in Tajikistan, Vast has been contracted to develop and manage the Aprelevka gold mines on behalf of its owner Gulf International Minerals Ltd ("Gulf") under which Vast is entitled, inter alia, to 10% of the earnings that Gulf receives from its 49% interest in Aprelevka in joint venture with the government of Tajikistan.  Aprelevka holds four active operational mining licences located along the Tien Shan Belt that extends through Central Asia, currently producing approximately 11,600oz of gold and 116,000 oz of silver per annum.  It is the intention of the Company to assist in increasing Aprelevka's production from these four mines closer to the historical peak production rates of approximately 27,000oz of gold and 250,000oz of silver per year from the operational mines.

 

Beaumont Cornish Ltd

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

 

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