Vast Resources secures $7mln from US fund

Vast Resources secures $7mln from US fund

HARARE, January 4 (The Source) – London-listed junior miner Vast Resources on Monday announced that it had secured a $ 7,3 million investment from United States-based venture capital firm Crede Capital, which will take up shareholding in the company.

Vast, previously African Consolidated Resources (AFCR), owns 50 percent of Pickstone-Peerless gold mine in Chegutu — 100 kilometres south-west of Harare. It also has operations in Romania.

According to a Binding Subscription Agreement entered into by the two companies, Vast would issue Ordinary Shares to Crede Capital in four separate tranches to Creed Capital for an investment of £5 million.

In a statement on Monday, chief executive Roy Pitchford said the financing was key and may be utilised for general working capital purposes.

“Securing a long term, cornerstone investor has been a requirement of the Company since its transition from a junior explorer to a mine operating company,” said Pitchford.

Pitchford said the financing was staged to minimise dilution to existing shareholders while simultaneously providing maximum flexibility to the company.

Following the issue of the first tranche, Crede Capital would hold 156,250,000 Ordinary Shares representing 8.61 per cent of Vast Resources issued share capital.

Crede Capital is a family fund focused on life sciences, healthcare, energy, natural resources, media, social media and technology.

Since its inception in 2009, Crede has completed approximately 115 transactions, committing in excess of $900 million in capital.