Shares in the gold and silver miner roared back to life after a lengthy suspension, as investors welcomed a reworked balance sheet and a stake in a producing Central Asian joint venture.
Vast Resources (AIM: VAST) returned to trading on AIM on Tuesday after completing its long-awaited reverse takeover of Gulf International Minerals, sending the shares up 50% to 4.5p.
The re-rating followed the closing of a £7.8m share placing at 6.25p, carried out alongside a punishing 25-for-one share consolidation designed to tidy up the company's capital structure ahead of the deal completing.
The takeover hands Vast a 49% interest in the Aprelevka joint venture, which holds four mining licences in the gold-rich Tien Shan belt spanning Central Asia. The operation is already producing around 11,000 ounces of gold and 130,000 ounces of silver a year from a combination of mining and tailings retreatment, giving the enlarged group an immediate revenue-generating asset rather than a pure exploration story.
Control of the business has shifted decisively towards the sellers of Gulf International Minerals, who now own 80.2% of the enlarged company, underlining the scale of the reverse takeover relative to Vast's existing operations.
Elsewhere on AIM, Empire Metals (AIM: EEE) also drew attention after an upgraded mineral resource estimate at its 70%-owned Pitfield titanium project in Australia was described as the largest titanium resource in the world, with contained TiO2 now put at 349 million tonnes; the shares rose 7.08% to 49.15p after broker Zeus lifted its fair value estimate for the stock from 84p to 144p. For Vast, the focus now turns to integrating the Aprelevka operations and demonstrating that the newly enlarged, deleveraged structure can convert existing gold and silver output into consistent cash flow.
This report is based on Vast Resources’s announcement and coverage by UK Investor Magazine. 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: Far Chinberdiev on Unsplash.
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