Issue of Equity and TVR

RNS Number : 4167S

Regency Mines PLC

20 December 2016

 

REGENCY MINES PLC

("Regency" or the "Company")

Issue of Equity and TVR

20 December 2016

Regency Mines PLC, the natural resource development and investment company with interests in oil and mineral exploration, announces that it has raised £210,000 by way of   placings of 52,500,000 new ordinary shares of 0.01 pence each ("Shares") in the Company at a price of 0.4p per share with 1 for 1 warrants exercisable at a price of 0.8p for twenty-four months ("Placing").  The purpose of the issue is to provide funding towards the completion of the acquisition of a 20% interest in the Carbon Minerals Corporation for £250,000 as announced on 25 November 2016.  A deposit of £50,000 has been paid. Completion is scheduled to take place on or about 23 December 2016.

Andrew Bell, Chairman of Regency Mines states: "Following a visit to the Rosa Coal Mine and meetings and interviews with the operations team on the ground the Board of Regency has decided to proceed with its investment to acquire a 20% interest in the metallurgical coal asset.  The quality of the coal produced by the mine is suitable for certain specialist and high value uses and has an established demand. The pre-stripping and creation of highwalls carried out in the 1960s means that minimal preparatory work on the benches is required and will enable rapid implementation of the next few phases of the mining plans. Mining of these phases covering a permitted 800,000 tons of coal is expected to be cost effective and strongly cash generative at today's coal prices.      

We welcome strong and supportive investors, both old and new, and we look forward to working with the team at Carbon Minerals to bring the mine back into production early in 2017."

Further Information and Additional Terms

The Placing is conditional on admission of the Shares to trading on AIM ("Admission").

Application has been made to the London Stock Exchange for Admission of the Shares, which will rank pari passu with the Company's existing issued Ordinary Shares. Dealings are expected to commence at 8.00 a.m. on or around 6th January 2017, with the exception of 6,250,000 shares in respect of which dealings are expected to commence at 8.00 a.m. on or around  13th January 2017.

Following the Placing, the Company's total issued ordinary share capital will consist of 379,884,571 Shares with voting rights.  No Shares are held in treasury.

The above figure of 379,884,571 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Background on Rosa Coal Asset:

·     Regency has signed a conditional binding Heads of Terms to acquire a 20% shareholding in CMC, a special purpose company formed to hold and restart the Rosa Mine;

·     The Rosa Mine received in 2010 a NI 43-101 report prepared by McGehee Engineering Corporation stating that Phase 1 of the Rosa Mine project contained Proven Reserves of 453,000 tons of coal at an average 14,070 BTU/lb with 5.14% average moisture content and 4.45% average ash content considered a medium volatility bituminous coal deposit;

·     Carbon Minerals will start coal production at Rosa Mine within three months and will in January begin washing coal on behalf of third parties;

·     Coal in the Rosa Mine is located in the state of Alabama within the Plateau Coal Field of the Warrior Basin in the Southern portion of the Appalachian Coal region.  This region represents one of the primary coal producing regions in the United States;

·     Modern coal mining began in the 1960s when Calvert & Marsh Coal Company conducted extensive surface mining at the mine site;

·     Carbon Mineral's plan is to exploit coal seams that have previously been exposed and left behind by surface mining activities conducted by Calvert & Marsh, using low-cost auger drilling to recover the significant amounts of coal that remains in the hillsides;

Note:  The Market Abuse Regulation ("MAR") became effective from 3 July 2016. Market soundings, as defined in MAR, were taken in respect of the Placing with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.

For further information, please contact:

Andrew Bell 0207 747 9960                                                 Chairman Regency Mines Plc

Scott Kaintz 0207 747 9960                                                  Executive Director Regency Mines Plc

Roland Cornish/Rosalind Hill Abrahams 0207 628 3396   NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744                                          Broker Dowgate Capital Stockbrokers Ltd.

 

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