New Licence Applications and Ram Resources Shares

RNS Number : 9886H

Regency Mines PLC

23 May 2014

 



REGENCY MINES PLC

("Regency" or the "Company")

Papua New Guinea Nickel & Gold Licence Application - Lake Trist

Issuance of Ram Resources shares

23 May 2014

Highlights

·     Application for 1,284 sq km nickel license in Papua New Guinea

·     Ram issues 40,625,000 new shares to Regency

Lake Trist Project, PNG

Regency Mines Plc ("Regency" or the "Company"), the mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Papua New Guinea and Sudan, reports that it has applied for a nickel and gold licence totalling 1,284 sq km, located 15km from the coast and 75km south of the major port city Lae in eastern Papua New Guinea.

The area under application contains nickel laterite-bearing ultramafics hosting a historic inferred resource of 70Mt at 0.68% nickel established by Bulolo Gold Dredging Co. Ltd in the late 1950s (and therefore non-compliant with modern standards). Minor work carried out sporadically by other operators in the 1960s & 1970s reported nickel grades up to 1.68%. Only about 7% of the 35km by 10km potentially laterised target area appears to have been tested by previous explorers.

Further to the nickel potential, the western half of the area lies within the Wau-Bulolo goldfields, just 15km east of the Hidden Valley Gold Mine (Newcrest and Harmony Gold JV), which produces 250,000oz of gold per annum.

A map of the licence area is available at:

http://www.rns-pdf.londonstockexchange.com/rns/9886H_-2014-5-23.pdf

Andrew Bell, Chairman, comments: "Since Indonesia enforced a total ban on the export of unprocessed nickel products less than four months ago, we have witnessed nickel prices increase by more than 40%. Asia's major nickel consumers, who previously sourced up to half of their nickel from Indonesia, are competing to secure new supplies to cover the shortfall, and some have approached us. With no sign of Indonesia lifting the ban, we expect nickel prices to be strong for the foreseeable future.

"Lake Trist was an area we previously applied for, as the second applicant in line, since it may have potential for direct shipping ore. A renewed opportunity recently arose, and we acted promptly since we believed the time was opportune.

"Regency has also been actively engaging potential partners in relation to its 162Mt Resource at Mambare and other nickel interests, and the Lake Trist opportunity would potentially add to the attraction of Regency's nickel interests."

Ram Resources Ltd (ASX:RMR)("Ram")

Further to the announcement of 14 April 2014, the first tranche of 40,625,000 new Ram shares, issued under the recent Ram funding by conversion of 6.5% out of the 20% carried interest retained by Regency in the Fraser Range tenements, have been issued to Regency at a deemed issue price of AUD 0.8c. The closing price of Ram today was AUD 0.9c.

Following this issue, the Company's shareholding in Ram will be 95,396,767 shares (15.45%), and after the issue of a second tranche of 35,000,000 new Ram shares which Regency has requested, it will be 130,396,767 shares (19.99%). 

For further information contact:

Andrew Bell 0207 747 9960 or 0776 647 4849                 Chairman Regency Mines Plc

Colin Aaronson / David Hignell 0207 383 5100             NOMAD Grant Thornton UK LLP

Nick Emerson 01483 413500                                           Broker SI Capital Ltd.

Saif Janjua 0207 382 8416                                              Joint Broker Beaufort Securities Ltd

Rupert Trefgarne 0203 128 8817                                     Media Relations MHP Communications

 

END

 

 

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