Vast Resources (LSE:VAST), the AIM-quoted mining company, has entered into a loan agreement with Glencore International, a subsidiary of Glencore, for a $10 million term loan facility.
Of that total, $4 million is restricted to project expansion at the Aprelevka gold mine, while the remaining $6 million will fund working capital and debt repayment across the group. Release of the funds now hinges on completion of Vast's proposed reverse takeover, which requires shareholder approval at a general meeting convened for 18 August, followed by admission to AIM.
The facility carries interest at Term SOFR plus 5% annually, stepping down to 3.75% once certain qualifying events occur, with repayments starting 31 March 2027 and running to the second anniversary of the closing date.
Glencore has secured the loan with a share charge over Vast's entire stake in Gulf International Minerals, once that transaction completes, and a 60-month right of first offer on future mineral concentrate production from Vast's mining operations.
As part of the arrangement, Vast has issued Glencore 10 million warrants exercisable at 7.5p per share over three years from closing.
Completion of the reverse takeover is expected to follow Wednesday's general meeting, with admission standing as the final condition before the loan funds are released.
News Intelligence what this means for the company
Vast Resources has secured a $10 million term loan from Glencore International, with $4 million earmarked for Aprelevka gold mine expansion and $6 million for working capital and debt repayment. Funds release is conditional on completion of the company's reverse takeover, which requires shareholder approval at a 18 August general meeting. The facility carries interest at Term SOFR plus 5% annually, stepping down to 3.75% once certain qualifying events occur, with repayments starting 31 March 2027, and Glencore has secured a 60-month right of first offer on future mineral concentrate production.
- Glencore's security package—a share charge over Vast's entire stake in Gulf International Minerals and a right of first offer on concentrate production—ties the lender's upside directly to the success of the Aprelevka expansion and broader mining operations, creating alignment but also signalling Glencore's confidence in the asset.
- The 10 million warrants issued to Glencore at 7.5p per share represent a potential equity stake if exercised, adding dilution risk to existing shareholders alongside the debt obligation.
The loan de-risks near-term working capital and provides dedicated expansion capital for Aprelevka, but funds remain conditional on RTO completion and AIM admission—both scheduled for imminent resolution. The interest step-down and deferred repayment schedule (no capital due until March 2027) ease cash flow pressure, though the warrant issuance and Glencore's production offtake rights reduce future upside and operational flexibility.
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