REG-Placing, Open Offer & Appointment of Joint Broker <Origin Href="QuoteRef">VAST.L</Origin>

Vast ResourcesAnnouncement

21/11/2017 13:50

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This announcement does not constitute a prospectus or offering memorandum or
an offer in respect of any securities and is not intended to provide the basis
for any investment decision in respect of Vast Resources plc or other
evaluation of any securities of Vast Resources plc or any other entity and
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Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

21 November 2017
Vast Resources plc
("Vast" or the "Company")

Placing to raise £1,000,000
Open Offer to raise up to £1,250,000
Appointment of Joint Broker

Vast Resources plc, the AIM-listed mining company with operating mines in
Romania and Zimbabwe, is pleased to announce a financing update which is
designed to facilitate the Company's continued expansion and production
optimisation whilst offtake debt finance is secured in Romania.

Overview
* Raised in aggregate £1,000,000 (approximately US$1.32 million) before costs
through a Placing (the "Placing") of 190,476,190 ordinary shares of 0.1 pence
in the Company ("Ordinary Shares") at a price of 0.525 pence per Ordinary
Share (the "Placing Shares").
* Shareholders will be invited to participate on the same terms as those
investors in the Placing, through a proposed open offer to raise up to
£1,250,000 (approximately US$1.65 million) by the issue of up to 238,095,238
Ordinary Shares at the price of 0.525 pence per Ordinary Share (the "Open
Offer").
* The Board and management is simultaneously working to finalise longer-term,
non-dilutionary offtake financing that will see both the Company's Baita Plai
Polymetallic Mine and the Manaila Polymetallic Mine reach their production
objectives.
* Appointment of SVS Securities Plc ("SVS") as joint broker with immediate
effect. 
Purpose of the fundraising
Through its recent announcements, the Company has signalled that its Directors
have estimated a strategic financing requirement for its operations of US$10
million (details of which are set out below) and encouraged by the drilling
results to date at Carlibaba, the Company believes it is in a good position to
obtain substantial offtake debt finance from metal traders. The Company has
started an offtake contract bidding process linked to pre-shipping finance,
funded by the retention of a portion of subsequent concentrate sale proceeds,
and it is believed that a significant proportion of the capital requirements
of the Company can be funded from these sources or by other non-dilutionary
methods.

While such measures are being negotiated, the Company requires finance towards
its overall $10 million requirement, which it believes should be satisfied by
the Placing supplemented by such amount as it raises in the Open Offer. 

Background and further details
The Company has made significant progress over the last 20 months, over which
it has completed its transition from an explorer to a miner.    Manaila
Polymetallic Mine ·         This is an open-pit mine with a current
JORC Indicated and Inferred mineral resource of 2,600,000 tonnes open pit at
1.0% copper and 0.9% zinc at a cut-off grade of 0.25% copper, together with
considerable exploration targets. ·         The Group has increased
its holding in the mine to 100%. ·         A licence extension has
been obtained that increases the total prospecting licence area by more than
20 times. ·         Production has increased over the time period
and optimisation initiatives undertaken. ·         A zinc flotation
line has been installed to establish a second revenue stream.
·         A gravity concentrator has been installed to extract a
pyrite concentrate containing gold credits. ·         A phase 1,
ten-hole drill programme for 1,000 metres at the Carlibaba prospect located
adjacent to the current Manaila open pit has been completed and results
announced on 4 October 2017. ·         Phase 2 drilling to test the
extension of the Carlibaba ore body at depth has been completed and assays
sent to an independent external laboratory for analysis.
·         It is the Group's objective to establish a second open pit
mining operation at Carlibaba and to establish an enlarged mining complex that
will utilise a centralised metallurgical processing facility for both open
pits.   Baita Plai Polymetallic Mine ·         This is a skarn
deposit comprising several veins in calcareous sediments in five distinct
pipes with a reserve and resource under the Romanian reporting system of
1,800,000 tonnes copper-lead-zinc, gold and silver with uncategorised
resources of molybdenum, tungsten and bismuth. ·         This has
uncategorised resources in other pipes and a substantial exploration upside.
·         After an extremely long and difficult process due to the
insolvency of the previous owner, the point has been reached where the
Directors believe that the grant of an association licence giving the right to
mine is imminent. ·         The mine is due to become operational
within six months of the grant of the licence. ·         The
budgeted expenditure before first revenue is $1.5 million (CAPEX $1.2m +
resource drilling $0.3m). This low figure reflects the fact that the Group has
acquired 60 years of infrastructure development and investment that would take
5-10 years to build today. Basic care and maintenance has been undertaken by
the company to ensure access to the underground infrastructure is unimpeded.
  Pickstone Peerless Gold Mine ·         Significantly increased
production and revenues have been achieved. ·         A new sulphide
plant is nearly completed and due for commissioning imminently. This is
estimated to increase production to at least 35,000 tonnes per month from the
current level of 20,000 tonnes per month.    The Company has commenced
prospecting activities at Piciorul Zimbrului and Magura Neagra (74km from
Manaila) in October 2017.  Initial estimates derived from open source
literature related to the mineralisation at Magura Neagra have indicated an
exploration target (non JORC compliant) of up to 3,000MT of ore to a depth of
600 metres at grades of up to 0.8% copper and 0.5 grams per tonne gold.  
The Company will now require approximately US$10 million for the next phase of
its development to be applied as follows:

                                                                                        US$   
 MPM new metallurgical complex                                                           4.0m 
 BPPM reopening                                                                          1.2m 
 BPPM underground resource drilling  pre-opening              0.3m                       0.6m 
                                     post opening             0.3m                     
 Piciorul Zimbrului and Magura Neagra prospecting                                        0.4m 
 UK and Romania overheads - 12 months                                                    1.2m 
 Repayment of SSGI loan to finalise Baita Plai exploitation licence                      1.6m 
 General working capital                                                                 1.0m 
 TOTAL                                                                                  10.0m 

As stated above, the amounts raised by the Placing and the Open Offer will
count towards this requirement.

Appointment of Joint Broker
SVS has been appointed joint broker to the Company alongside Brandon Hill
Capital Ltd.

Admission of and Dealings in the Placing Shares
The issue of the Placing Shares is conditional on their admission to trading
on AIM ("Admission").  Application is being made for the Placing Shares to be
admitted to trading on AIM and it is expected that Admission will become
effective and dealing in the Placing Shares will commence on 27 November
2017.  The Placing Shares will rank pari passu with existing Ordinary Shares.

Following Admission, the total issued share capital of the Company will be
4,875,713,703.  The Placing Shares together will represent approximately 3.91
per cent. of the enlarged share capital of the Company prior to the Open
Offer. 

The above figure of 4,875,713,703 may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in Vast under the FCA's Disclosure and
Transparency Rule. 

Open Offer
A further announcement concerning the timetable and other details of the Open
Offer will be made shortly and a circular sent to shareholders at the same
time.

Roy Pitchford, Vast CEO, commented:

"This limited placing and the subsequent open offer to shareholders on the
same terms, will ensure the Company is adequately funded through the process
of securing longer-term, non-dilutionary offtake financing that will see both
the Baita Plai Polymetallic Mine and the Manaila Polymetallic Mine reach their
production objectives.

"These objectives will see Vast generating sufficient cash flows to cover its
operating and overhead funding requirements while the current Zimbabwe mining
operations continue to be operationally self-financing.  It is anticipated
that any future capital raisings will be for specified acquisitions or
expansions."

**ENDS**

For further information, visit www.vastresourcesplc.com or please contact:

 Vast Resources plc Roy Pitchford (Chief Executive Officer)                    www.vastresourcesplc.com +44 (0) 20 7236 1177    
 Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle  www.beaumontcornish.com                          
                                                                               +44 (0) 020 7628 3396                            
 Brandon Hill Capital Ltd - Joint Broker Jonathan Evans                        www.brandonhillcapital.com +44 (0) 20 3463 5016  
 SVS Securities Plc - Joint Broker Tom Curran Ben Tadd                         www.svssecurities.com +44 (0) 20 3700 0100       
 St Brides Partners Ltd Susie Geliher Charlotte Page                           www.stbridespartners.co.uk                       
                                                                               +44 (0) 20 7236 1177                             

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").

Notes

Vast Resources plc is an AIM listed mining and resource development company
focussed on the rapid advancement of high quality brownfield projects and
recommencing production at previously producing mines in Romania.

Vast Resources currently own and operates the Manaila Polymetallic Mine in
Romania, which was commissioned in 2015.  The Company's portfolio also
includes the Baita Plai Polymetallic Mine in Romania, where work is currently
underway towards obtaining the relevant permissions to start developing and
ultimately commissioning the mine.

The Company also has interests in a number of projects in Southern Africa
including a 25 per cent. interest in the producing Pickstone-Peerless Gold
Mine in Zimbabwe.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of
Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Vast Resources plc via Globenewswire