Vast Resources shares slide on creditor's threat of 'enforcement'
By Josh White
Date: Monday 23 Sep 2024
(Sharecast News) - Mining company Vast Resources updated the market on its efforts to repay an outstanding asset-based debt and secure refinancing on Monday.
The AIM-traded firm said it currently owes $5.82m to A&T Investments, also known as Alpha.
It said Alpha had notified Vast that it would begin enforcement procedures on 26 September if the debt remained unpaid by that date.
The procedures would involve a third party, a shareholder of Vast, who had reportedly assured the company that he did not intend to take any action against Vast should Alpha proceed with enforcement.
Vast Resources acknowledged that it was unlikely to meet the 26 September repayment deadline.#
However, it said it remained confident in receiving restructuring finance from the owner of a Swiss investment firm, as previously announced on 29 April.
Due to delays and uncertainties in securing that financing, Vast said it had initiated alternative strategies to settle its debts and secure additional short-term working capital.
The company's board expected the measures to be finalised in the fourth quarter.
Vast emphasised that even if Alpha proceeded with enforcement actions against the third party shareholder, it would not have an immediate impact on its operations, assets, or liabilities.
It said it would provide further updates should the situation evolve.
At 1153 BST, shares in Vast Resources were down 22.05% at 0.08p.
Reporting by Josh White for Sharecast.com.
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