Gold exploration and development company, Vector Resources Limited’s (ASX: VEC) securities were reinstated to official quotation today and since then it has climbed up by 30 percent (as at 1:15 PM AEST, 17 January 2019). Earlier on 4 January 2019, the company’s securities were temporarily suspended from trading on ASX at the request of Vector Resources, pending an announcement by the Company regarding the acquisition of the Adidi-Kanga Gold Project.
After that on 11 January 2019, the company announced that it has completed the Acquisition of a 60% interest in the Adidi-Kanga Gold Project and all the necessary joint venture documentation and related agreements and approvals have now been received and executed by the parties.
For the final settlement of the acquisition, the company was required to pay the Tranche 1 acquisition payment of US$5m in cash to MGI and the company was needed to issue US$5m of shares in Vector to MGI at A$0.022 per share.
Earlier on 21 September 2018, the issue of US$5m of shares in Vector to MGI was approved at a general of shareholders, however as this shareholder approval was received more than three months ago, the Company had applied to the Australian Securities Exchange (ASX) for a waiver under Listing Rule 14.7.
In an earlier announcement (dated 11 January 2018) the company had informed that ASX had not approved the waiver and as result of this pending waiver application, ASX had requested the Company to remain in a trading suspension. On 16 January 2019, the company announced that it will seek shareholder approval as soon as possible under the Share Sale & Purchase Agreement. The company has also informed that if in any case, the shareholders disapprove the issue of shares, the Company will pay the due amount in cash.
Recently the company announced that it has accepted a committed offer of debt funding of US$35m with a Dubai based entity, FT General Trading LLC, funds of which will be used for payments relating to the acquisition of Adidi-Kanga, the completion of the DFS for Adidi-Kanga and for its potential future development.
The company had also executed loan documentation for a US$20 million Committed Debt Facility with resources focus fund Medea Future Materials Fund L.P. This Debt Facility was an important and crucial step in finalizing the acquisition of its interest in the Adidi-Kanga Gold Project.
During the September Quarter, Vector and Fimosa Capital Limited’s wholly owned subsidiary Mongbwalu Goldfields Investment Limited executed the Share Sale and Purchase Agreement and Shareholders Agreements to acquire its interest in Mongbwalu Goldfields Investment Holdings 6 Limited. As at 30 September 2018, the company recorded $922k net cash used in operating activities of, $9k net cash used in investing activities and $283k net cash from financing activities.
In the last six months, the share price of the company decreased by 9.09 percent as on 31 December 2018. VEC’s shares traded at $0.026 with a daily volume of 41,159,307 (as at 1:15 PM AEST, 17 January 2019).