LONDON (ShareCast) - (Sharecast News) - Vast Resources announced on Friday that the first tranche drawdown process of the Atlas Capital Markets, adjoined with Atlas Special Opportunities, facility under the bond issue deed that it announced on 24 October, had been completed, with confirmation of payment now received.

The AIM-traded firm said the par value of the bond was $7.1m, providing net cash proceeds before costs of $6.39m.

It said that as part of the transaction, it executed a tripartite intercreditor agreement with Mercuria Energy Trading and Atlas.

The main terms of the agreement were that, upon completion of the conditions precedent, Mercuria would agree to a standstill period for the duration of the Atlas facility, subject to certain terms and conditions.

They also included full repayment of the balance of debt to Sub-Sahara Goldia Investments, and the release of security following payment to Sub-Sahara Goldia of $1m out of the drawdown of the first tranche.

It would also see a $1m cash payment to Mercuria upon the drawdown of the first tranche.

Subject to certain terms and conditions and completion of conditions precedent, the remaining principal and interest, fees and costs accrued on the remaining existing Mercuria Tranche A facility would be recovered from future cash flow, the board said.

Offtake agreements would remain with Mercuria, it added.

Vast Resources noted that AP Mining Group - the owner of a 20% interest in Baita Plai Polymetallic Mine in Romania - was a party to the intercreditor agreement, and had pledged its 20% interest in Baita Plai.

"We are pleased that tranche one of the Atlas Capital Markets facility has been achieved and with the opportunity that this unlocks," said chief executive officer Andrew Prelea.

"The board of directors and management have worked extremely hard restructuring the company in order to get to this point which gives the Company a clear path to production at the Baita Plai Polymetallic Mine.

"We look forward to updating the market, as and when, on our progress at Baita Plai."

At 1419 GMT, shares in Vast Resources were up 0.31% at 0.33p.

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