Vast Resources PLC shares rose 59% to 4.76 pence in early London trading on Wednesday. This increase followed the completion of its reverse takeover of Gulf International Minerals. The company's shares resumed trading at 8:00 a.m. after shareholders approved the deal at a general meeting on Tuesday.
Key Details
Under the agreement, Vast Resources acquires a 49% stake in the Aprelevka Joint Venture. This venture operates in the Tien Shan Gold Belt in northern Tajikistan. The asset currently produces about 11,000 ounces of gold and 130,000 ounces of silver each year from mined ore and tailings. The deal involved issuing 1.32 billion shares at a price of 6.25 pence each. This represents about 80.23% of the enlarged ordinary share capital.
Background
The company also completed a capital consolidation. It converted every 25 existing shares of 0.1 pence into one new share of 2.5 pence. Vast Resources raised about £7.5 million through a placing and subscription. It also had an oversubscribed retail offer that generated £300,000. The company has received interest from other investors looking to subscribe for £500,000 of new equity on similar terms in the coming days. The proceeds will help settle outstanding creditor loans and advance the Aprelevka asset. Of a newly secured $10 million debt facility, $4 million is earmarked for project expansion.
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The rise in Vast Resources shares may attract investor interest in the mining sector. This is especially true for gold and silver assets as the company increases production at its new operations. The higher trading volume could also affect the AIM index as investors reassess valuations in the mining space.
Watch for further updates on the Aprelevka project and any announcements about production targets or financial performance in the upcoming quarters.
Based on reporting by: proactiveinvestors.co.uk