viewVast Resources PLC

Vast Resources draws down first tranche from Atlas

Chief executive Andrew Prelea said reaching this point "gives the company a clear path to production at the Baita Plai polymetallic mine"

Vast Resources PLC -

Vast Resources PLC (LON:VAST) has received net cash proceeds of US$6.39mln from the drawdown of the first tranche of a loan from Atlas Capital.

“We are pleased that Tranche 1 of the Atlas Capital Markets facility has been achieved and with the opportunity that this unlocks,” said Vast chief executive Andrew Prelea.

READ: Vast Resources releases interim results for ‘critical period’

“The board of directors and management have worked extremely hard restructuring the company in order to get to this point which gives the company a clear path to production at the Baita Plai polymetallic mine.”

As part of the Atlas transaction, Vast has executed a tripartite intercreditor agreement with existing lender Mercuria Energy Trading and Atlas, which will mean Mercuria will agree to a standstill period for the duration of the Atlas facility subject to certain terms and conditions.

Mercuria, which will retain its offtake agreement, will be paid back US$1mln of cash, with remaining existing debts to be recovered from future cash flow, while fellow creditor Sub-Sahara Goldia will be fully repaid with a payment of US$1mln from this tranche.

Prelea and other Vast directors who own shares in the company have also offered to put up their 143.14mln shares in an escrow account as guarantees for some of the company’s obligations under the bond issue deed together with the achievement of certain milestones. 

The shares will be released back to the directors upon the achievement of these obligations and milestones.

Quick facts: Vast Resources PLC

Price: 0.1705 GBX

Market: AIM
Market Cap: £19.26 m

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