Key points:
- Vast Resources shares edged higher after the miner finally settled with Atlas.
- Investors cheered as the decision marked the end of the strained relationship.
- The miner can now focus on the critical task of growing its output.
The Vast Resources PLC (LON: VAST) share price surged by 19.2% after the mining company finally settled with Atlas Special Opportunities regarding its bond conversion notice for shares worth $800,000.
Also read: The Best Nickel and Nickel Mining Stocks To Buy.
Investors can finally breathe a sigh of relief after Vast Resouces agreed to issue 241.8 million new ordinary shares to fulfil Atlas’s last bond conversion. The miner sought legal advice and honoured the conversion notice despite repaying the financier's outstanding bonds.
Luckily for the company, the settlement with Atlas Special Opportunities has specific conditions that prevent Atlas from ever issuing another bond conversion notice while releasing all securities related to the Bond Issuance Deed signed between the two firms.’
Vast Resources also got Atlas Special Opportunities to confirm the release of all obligations owed by the Company about the inter-creditor and Standstill Deed signed on 29 January 2020. Atlas also agreed to release all shares belonging to Andrew Prelea, Roy Tucker, Brian Moritz, Paul Fletcher and Craig Harvey and provide confirmation of such a release.
The shares are currently held subject to the Escrow Agreement signed on 29 January 2020 between Vast Resources PLC, Atlas Special Opportunities LLC, and all the relevant parties.
Investors cheered the final nature of today’s agreement, which puts an end to the previous relationship between Atlas Special Opportunities LLC and Vast Resources, which has since soured given the acrimonious way in which the latest events have unfolded.
While the last conversion notice from Atlas came after Vast Resources had fully repaid all outstanding bonds, the miner took the opportunity to end its financial relationship with Atlas entirely.
We are not privy to what exactly happened between the two firms, and we’ll probably never know. However, the information in the public domain paints a particular picture, which is what we are writing about. These are our views based on the publicly available information.
Vast Resources said it would notify the public once Atlas has completed its part of the deal, including refunding the $800,000 the miner had paid.
*This is not investment advice. Always do your due diligence before making investment decisions.
Vast Resources share price.
The Vast Resources share price edged 19.23% higher to trade at 1.401p, rising from Monday’s closing price of 1.175p.
