Vast Resources plc

Restructure of Atlas Equity Linked Convertible Bond to an Extended Fixed Term Loan

Restructure of Atlas Equity Linked Convertible Bond to an Extended Fixed Term Loan

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

10 August 2021

Vast Resources plc
(“Vast” or the “Company”)

Restructure of Atlas Equity Linked Convert i ble Bond to an Extended Fixed Term Loan

Vast Resources plc, the AIM-listed mining company, is pleased to announce it has executed a legally binding Heads of Terms (‘HOT’) with Atlas Special Opportunities LCC ‘Atlas’ which will form the basis of a deed of variation to the Atlas Bond Issuance Deed dated 23 October 2019 (‘Atlas Deed of Variation’) which would restructure the Tranche 1 Bonds issued to Atlas announced on 31 January 2020 (the ‘Bonds’) into a non-equity linked loan.  

The purpose of the legally binding HOT is to restructure the existing equity linked convertible Bonds repayable on 29 January 2022 into a traditional senior secured loan with a fixed price premium with repayment postponed to 30 June 2022. The par value of the Bonds currently outstanding is $6.5 million.

The terms of the HOT will take effect only upon agreed documentation being executed with Mercuria (the ‘Effective Date’) under the terms of the tripartite Intercreditor Agreement (‘ICA’) as announced on 31 January 2020. The HOT provides that the repayment of the Bonds becomes subordinated to the interests of Mercuria and has a fixed repayment date of 30 June 2022.

The HOT provides that $1 million of the Bonds be repaid within 30 days from the Effective Date and that a premium be added to the par value of the Bonds remaining.

The HOT also provides for the issue of new warrants to Atlas of such number as would be required at a purchase price of 16p per Ordinary Share to purchase $2 million of Ordinary Shares in the Company at an exercise price of 16p per share exercisable at any time within three years of the effective date.

Andrew Prelea, Chief Executive Officer of Vast Resources Plc, commented:
The restructuring of the Atlas Convertible Bond to an Extended Fixed Term Loan addresses the concerns of shareholders on a number of levels . F irst and foremost , it eliminates the risk of conversion at the current share price levels . Furthermore, we believe the restructuring also highlights Atlas’s confidence in the C ompany’s ability to perform as a producing mining company with a positive outlook regarding the settlement of the outstanding loan and premium within the extended period.
Market Abuse Regulation (MAR) Disclosure

Certain 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 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 (“UK MAR”) until the release of this announcement.

**ENDS**

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

Vast Resources plc
Andrew Prelea (CEO)
Andrew Hall (CCO)

www.vastplc.com
+44 (0) 20 7846 0974
Beaumont Cornish – Financial & Nominated Advisor
Roland Cornish
James Biddle

www.beaumontcornish.com
+44 (0) 20 7628 3396
Shore Capital Stockbrokers Limited Joint Broker
Jerry Keen (Corporate Broking)
Toby Gibbs / James Thomas (Corporate Advisory)

www.shorecapmarkets.co.uk
 +44 (0) 20 7408 4050
Axis Capital Markets Limited Joint Broker
Richard Hutchison

www.axcap247.com
 +44 (0) 20 3206 0320
St Brides Partners Limited
Susie Geliher
www.stbridespartners.co.uk
+44 (0) 20 7236 1177

ABOUT VAST RESOURCES PLC

Vast Resources plc is a United Kingdom AIM listed mining company with mines and projects in Romania and Zimbabwe.

In Romania, the Company is focused on the rapid advancement of high-quality projects by recommencing production at previously producing mines.

The Company's Romanian portfolio includes 100% interest in the producing Baita Plai Polymetallic Mine, located in the Apuseni Mountains, Transylvania, an area which hosts Romania's largest polymetallic mines. The mine has a JORC compliant Reserve & Resource Report which underpins the initial mine production life of approximately 3-4 years with an in-situ total mineral resource of 15,695 tonnes copper equivalent with a further 1.8M-3M tonnes exploration target. The Company is now working on confirming an enlarged exploration target of up to 5.8M tonnes.

The Company also owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance. The Company has been granted the Manaila Carlibaba Extended Exploitation Licence that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.

In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Community Diamond Concession, Chiadzwa, in the Marange Diamond Fields.