JOHANNESBURG (miningweekly.com) – Aim-listed Vast Resources has received a finance offer from Sub-Sahara Goldia Investments, which matches the $10-million agreement signed with a Romanian investor last month.
Sub-Sahara, which provided Vast with a $4-million loan in January, had a right to provide equivalent finance to the proposed investment of the corporate finance and investment firm. The company has now exercised this right, Vast reported on Friday, adding that the finance would be on the same terms and conditions as that of the investor.
“Sub-Sahara has also stated that it wishes to work with the investor, using the investor's expertise in Romania, to develop the Romanian assets. Sub-Sahara has invited the investor to meet in order to decide on a mutually beneficial way forward,” the mining firm said.
Vast announced in July that the Romanian investor would make its investment in two stages, with $8-million to be paid at stage one and $2-million at stage two. Stage one is a direct subscription by the investor for new shares in Vast Resources Romania (VRR), which will hold all Vast's Romanian assets. The investor will hold 51% of VRR.
Stage two will 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 a share. The investor will then hold an estimated 29% of the enlarged share capital of Vast.
The funds raised will be used for the company's capital expenditure and working capital requirements, mostly for the expansion of the Romanian operations.
Vast owns the Manaila polymetallic mine, in northern Romania, and also the Pickstone-Peerless gold mine, in Zimbabwe.