Cash-strapped Romania-focused copper miner Vast Resources has turned to its CEO to provide short-term funding through a €500,000 loan.
Vast Resources has lost around 90% of its market value since the beginning of 2024 as it grapples with a large debt pile and legal cases.
The unsecured loan provided by the CEO will be repayable once the company completes its funding process and achieves sufficient financial stability, should that ever be achieved. This interim financing solution comes as Vast Resources works to conclude various funding options previously disclosed to the market.
The company has outstanding debts of over €5m and was threatened with enforcement action last year by creditors.
Vast Resources has axed around half of its workforce at mines in Romania, but copper production in Q2 also fell by around half due to legal issues not directly related to the reduction in workforce.
A placing at the end of last year provided £750,000 in funding, which appears to be fully deployed given the need for today’s CEO loan. Vast said they will update the market in due course.