REG-Withholding consent to second tranche of the Crede Financing <Origin Href="QuoteRef">VAST.L</Origin>

Vast ResourcesAnnouncement

05/04/2016 07:05

Vast Resources PLC / Ticker: VAST / Index: AIM / Sector: Mining 
 
 5 April 2016 
 Vast Resources PLC 
 ("Vast" or "the Company") 
 
 Withholding consent to second tranche of the Crede Financing 
 
 Vast Resources Plc, the AIM listed mining company with operations in Zimbabwe
and Romania, announces that it has decided not to give consent to the
subscription of £1.25 million from Crede Capital ("Crede"), the second
tranche ("Second Tranche") of the financing agreed with Crede and announced on
4 January 2016 (the "Crede Financing").  Under the subscription agreement
entered into with Crede (the "Subscription Agreement"), Crede was to provide
four tranches of £1.25 million each at 90 day intervals starting on 4 January
2016 in exchange for shares and warrants. 
 
 The grounds for withholding consent are that the subscription for the Second
Tranche would result in Crede being interested in more than 25 per cent of the
share capital of the Company calculated on a fully diluted basis.  The
Subscription Agreement provides that the subscription may only be given with
the Company's consent in such circumstances.   
 
 The Company's share price has fallen substantially since the Crede Financing
was agreed.  As a result of this, the ordinary shares of 0.1p each in the
Company ("Ordinary Shares") issued to Crede on exercise of certain warrants
granted to it as part of the first tranche of the Crede Financing have been
highly dilutive to Vast's shareholders as a whole.  This dilution would have
been considerably less had the share price remained at or around 0.8p, the
price that it was on 4 January 2016. 
 
 The decision not to give consent has been taken in order to reduce further
dilution to existing shareholders.  The new subscription shares that would
have been issued to Crede as part of the Second Tranche would have been issued
at 0.24p per Ordinary Share, the closing bid price per Ordinary Share on 1
April 2016, and this would have entitled Crede to a further 520,833,333 shares
and an equal number of warrants.  
 
 The cancellation of the Second Tranche does not affect the contractual rights
and obligations between Crede and the Company in relation to the third and
fourth tranches of the Crede Financing. 
 
 The Directors intend to replace the Crede second tranche of £1.25m so that
the momentum of increasing production can be maintained.  Initial discussions
indicate that the terms of this funding will be on more favourable terms and
on a basis that will not conflict with the terms of the Subscription
Agreement. 
 
 The Company will also seek to engage with existing shareholders who are
interested in participating in future financing opportunities. 
 
 ** ENDS ** 
 
 For further information visit www.vastresourcesplc.com or please contact: 
 
  Vast Resources PLC Roy Pitchford (Chief Executive Officer)                                +40 (0) 372 988 988 - Romania Office +40 (0) 741 111 900 - Romania Mobile +44 (0) 7793 909 985 - UK Mobile   
  Roy Tucker (Finance Director)                                                           +44 (0) 1622 816918  +44 (0) 7920 189012                                                                     
    Strand Hanson Ltd - Financial & Nominated Adviser  James Spinney  James Bellman      www.strandhanson.co.uk                                                                                      
                                                                                          +44 (0) 20 7409 3494                                                                                            
    Daniel Stewart and Company PLC - Joint Broker  Martin Lampshire David Coffman         www.danielstewart.co.uk                                                                                     
                                                                                          +44 (0) 20 7776 6550                                                                                            
    Dowgate Capital Stockbrokers Ltd - Joint Broker Jason Robertson Neil Badger            www.dowgatecapitalstockbrokers.co.uk +44 (0) 1293 517744                                                    
    St Brides Partners Ltd Susie Geliher Charlotte Heap Hugo de Salis                      www.stbridespartners.co.uk                                                                                  
                                                                                          +44 (0) 20 7236 1177