LONDON based mining firm, Vast Resources says it has managed to raise a total £1,7 million through a shares placement to cover unforeseen expenses and ongoing projects.
Shares placement is a common method of raising business capital by offering equity shares and taking advantage of the strategy, the AIM trading company which currently has viable projects in Zimbabwe and Romania, issued 486 million shares.
The freshly injected capital will be deployed to meet the miner’s working capital requirements, unforeseen expenditure and support the Baita Plai Polymetallic Mine in Romania.
The top miner also intends to use the resources to recover a diamond parcel which is in the hands of the Reserve Bank of Zimbabwe.
Vast, a multi-resource operation, surrendered the historic parcel of 129 400 rough diamonds held in safe custody as evidence that it had exploited diamonds on claims previously owned by DeBeers.
The diamond outfit left Chiadzwa diamond fields in 2006, claiming it had failed to find viable reserves, following a decade of exploration.
A legal battle then exploded between Vast and Zimbabwean authorities who had held onto the gems when Vast wanted them back. The company then sued the Mines and Mining Development Ministry and eventually won the case early this year.
Further, the company said that it reached operational breakeven at its Baita Plai polymetallic mine in Romania.
It added that nameplate capacity is anticipated to be met in the third quarter of 2023, rather than in the first half of the year. – (New Zimbabwe)