Key points:
- Vast Resources today announced the date for a general meeting.
- The meeting’s main agenda will be to approve crucial resolutions.
- The GM marks the end of an eventful month for Vast Resources.
It has been an eventful month for Vast Resources PLC (LON: VAST) shares as the mining company struggled to end its relationship with Atlas Special Opportunities LLC, which finally ended on Tuesday, 24 May 2022.
The month started on a positive note after the mining company released its Q1 earnings and operations results revealing that its revenues had soared 236% in the three months. The miner also revealed that it had embraced mechanisation at its flagship Baita Plai polymetallic mine.
Also read: The Best Nickel And Nickel Mining Stocks To Buy.
However, the celebration was short-lived after Atlas Special Opportunities LLC gave its first conversion notice for ordinary shares worth $500,000 despite giving a verbal assurance that they did not intend to convert the bonds issued by Vast Resources worth over $4 million.
The move surprised investors since it forced the miner to issue 151 million new shares to meet the conversion notice. At the time, investors noted that Atlas Special Opportunities could significantly dilute existing shareholders if it decided to convert most of its bonds.
Luckily, the Vast Resources management team identified the same problem and decided to get the backing of another firm, A&T Investments Sarl, which offered it a $4 million secured loan facility with no attached conversion rights.
The miner then quickly conducted a share placement and subscription, which raised £3,243,325 before costs after selling over 463 million shares at 0.7p each. The amount will be used to repay part of the Atlas Special Opportunities bond, which is repaid in total, and to reduce the firm’s outstanding debt to Mercuria Energy Trading SA, the concentrate offtaker at the Baita Plai mine.
The Vast Resources general meeting is scheduled for 10 June 2022, where shareholders will be required to approve specific resolutions allowing the management team to issue shares to Mercuria and A&T Investments, the two firms that have stood with the miner during its recent challenges.
Investors will be happy to end the month positively after Vast Resources announced that it had completed the functional underground drill testing of the two new Mantis CMR4 production drilling rigs acquired by the company to mechanise the mining operations at Baita Plai.
For those wondering if Vast Resources is still an excellent investment, the short answer is yes, it still is.
*This is not investment advice. Always do your due diligence before making investment decisions.
Vast resources share price.
Vast Resources’ shares have fallen 36.71% in 2022 but could be headed higher soon.
