The miner emerges from a reverse takeover with a stake in a producing Tajik gold and silver operation and fresh cash to fund expansion.
Vast Resources plc (AIM: VAST) resumed trading on AIM at 8am on 19 August after completing a reverse takeover of Gulf International Minerals, handing the company a 49% beneficial interest in the producing Aprelevka gold and silver operation in Tajikistan.
The re-admission followed shareholder approval of the transaction and a 25-for-one share consolidation, alongside completion of a placing and subscription that raised approximately £7.5 million, plus a further £300,000 from a retail offer, leaving Vast with 1.646 billion shares in issue.
Aprelevka sits on Tajikistan's Tien Shan Gold Belt and holds four active mining licences, currently producing roughly 11,000 ounces of gold and 130,000 ounces of silver a year from mined ore and Soviet-era tailings. Together with a recently agreed US$10 million debt facility, of which US$4 million is earmarked for expanding Aprelevka and the remaining US$6 million for working capital and debt repayment, the new funding is intended to clear creditors and legacy loans while supporting further development at the site.
Vast is also weighing a further subscription of around £500,000 after interest from investors who missed out on the original fundraising, and has kicked off a new drilling campaign in Tajikistan aimed at delivering a maiden JORC-compliant resource, building on earlier drilling, trench sampling and metallurgical test work on the tailings facilities.
Chief executive Andrew Prelea called completion of the deal the start of a new chapter for the company, with management now focused on scaling up the cash-generating Tajik operation while continuing to work towards restarting Vast's dormant Romanian assets.
This report is based on Vast Resources plc’s announcement and coverage by Share Talk. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Encal Media on Unsplash.
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