Vast Resources plc

Issue of $2.0 million One Year Interest Free Convertible Loan Notes and Commitment to issue up to further $3.0 million Loan Notes

Issue of $2.0 million One Year Interest Free Convertible Loan Notes and Commitment to issue up to further $3.0 million Loan Notes

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

11 October 2016
Vast Resources plc
("Vast" or the "Company")

Issue of $2.0 million One Year Interest Free Convertible Loan Notes ("Loan Notes")

Commitment to issue up to further $3.0 million Loan Notes

Vast Resources plc, the AIM listed mining company with operations in Romania and Zimbabwe, is pleased to announce that it has entered into a subscription agreement and a convertible loan note instrument with Bracknor Fund Limited ("Bracknor") under which Bracknor has subscribed for US$2 million convertible Loan Notes in the Company (the "Subscription") (the "Agreements") which may, under its terms, be used for general corporate purposes.  Bracknor has also committed to subscribe over a two-year period for a further US$3 million Loan Notes in tranches of US$1 million each should Vast, without obligation, request this.  Further issues of Loan Notes and the exercise of warrants may require the approval of Vast's shareholders.  The Loan Notes also attract an entitlement to warrants as described below.

Overview of the Agreements

The principal terms of the Loan Notes are as follows:

                                                                                               
Other terms in the Subscription Agreement:

            Cooling Off Period

As an example:

Further Issues of Loan Notes 

Warrants

20 per cent. of £1 million = £200,000

Warrant Exercise Price = 0.35 pence x 130%. = 0.4 pence (rounded down)

Number of Warrants to be issued = 200,000 / 0.4 = 50,000,000

            Fees

A further fee equivalent to 5 per cent. of funds drawn down in accordance with the subscription is payable to Northland Capital Partners Limited in cash.

Termination

Orderly Market

Use of Proceeds

The funds realised from the Subscription will be applied to:

The ability to draw down further funds in accordance with the Agreement at Vast's election, ensures that the Company has sufficient certainty of funding for completion of the reopening of the Baita Plai Mine as and when it is required.

Roy Pitchford, Chief Executive of Vast, commented:
"This facility, combined with the surplus cash being generated at Pickstone-Peerless and the improved performance of the Manaila Mine, is expected to provide sufficient funding for the Company to have two income generating mines in Romania, an income generating mine in Zimbabwe and sufficient funding to evaluate a second mine in Zimbabwe.  In the event that Vast elects to draw down from this facility to the full, the Company should only have to revert to shareholders for additional capital in the event of additional new value accretive projects being acquired by Vast."

Pierre Vannineuse, CEO & Founder of Bracknor Investment, observed:
"Beyond our firm commitment to finance Vast Resources, for Bracknor this is a long-term partnership that will sustain the Company's capital base and effectively allow the Company to extract value from the low capex polymetallic mine developments in Romania and its gold mining interests in Zimbabwe.  We have full confidence in the management's ability to successfully carry out those projects and generate substantial returns."

**ENDS**

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

Vast Resources plc
Roy Pitchford (Chief Executive Officer)
 

+40 (0) 372 988 988 - Office Romania
 +40 (0) 741 111 900 - Mobile Romania
 +44 (0) 7793 909985 - Mobile UK
Strand Hanson Limited - Financial & Nominated Adviser 
James Spinney 
James Bellman

 
www.strandhanson.co.uk 
+44 (0) 20 7409 3494
Brandon Hill Capital Ltd - Joint Broker
Jonathan Evans

 
www.brandonhillcapital.com
+44 (0)20 3463 5016
Peterhouse Corporate Finance Ltd - Joint Broker 
Duncan Vasey
www.pcorpfin.com
 +44 (0) 20 7469 0936

 
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").

About Bracknor

Bracknor Capital Ltd is the Investment Manager platform of the Dubai based Bracknor Investment Group. Bracknor's mandate is to invest globally in SMEs that bears unique competitive advantages and true potential, providing them with paramount working capital or growth capital needed to foster and ignite their growth.

Bracknor, through its Chairman, Mr Aboudi Gassam, is backed up by the Saudi Group MS Group (Jeddah) -http://mscc.com.sa and aim to activate intra portfolio synergies to bring relevant opportunities and cooperative developments to Bracknor's portfolio companies particularly in the GCC (Gulf Cooperation Council) Region.

The funding from Bracknor was introduced to Vast by brokers, Northland Capital Partners Limited.

www.bracknor.com




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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