Placement and Equity Swap

RNS Number : 3777U

Regency Mines PLC

27 December 2012

 



REGENCY MINES PLC

("Regency" or "the Company")

Placement and Equity Swap

27 December 2012

Regency Mines plc, the mining exploration and mineral investment company with interests in nickel and other minerals in Australia,  Papua New Guinea, Pakistan, and Sudan is pleased to announce an update on its latest fundraising efforts. 

Private Placement:

Regency has agreed a private placement ("the Placing") through YA Global Master SPV, Ltd ("YAGM"). The placement involves the Company issuing 25,263,373 new ordinary shares to YAGM at a price of £0.0080225 per share for a total consideration of £202,675 before fees ("the Placement").  At least £84,506 of these funds will be used towards debt repayment of the outstanding loan instrument with YAGM, as announced on 17 June 2011, with the remaining amount being used for initial exploration activities in Sudan and for working capital purposes.

Equity Swap:

Separately, YAGM and Regency have entered into an equity swap agreement (the "Equity Swap") over a notional 19,584,361 shares (this does not involve the issue of new Shares). Under the terms of the Equity Swap, the market price of the Company's ordinary shares over the course of January 2013 (discounted by 2.5%) will be compared to a benchmark price of £0.008 per ordinary share (the "Benchmark Price").

Regency has set aside £39,169 pursuant to the Equity Swap ("the Collateral") mentioned above. The Collateral will be applied pursuant to the terms of the Equity Swap as follows:  if the discounted market price exceeds the Benchmark Price then a payment above the level of the Collateral will be made to Regency, with the overall payment depending on the amount by which the discounted market price exceeds the Benchmark Price. If the discounted market price is less than the Benchmark Price then the Collateral payment will be reduced, with the ultimate size of such payment depending on the amount by which the discounted market price falls short of the Benchmark Price. 

Director Scott Kaintz comments:

"At no additional cost to the Company, we seek to utilize a variety of financial structures to deleverage the business and reduce our overall level of risk.  Adding to this several recent and potential corporate transactions aimed at offloading costs while retaining project upside, the Company believes it will enter 2013 well optimized to advance its goals in Sudan, Australia, and Papua New Guinea. "     

Following the Placing, the Company's total issued ordinary share capital will be 850,713,161 ordinary shares. Application has been made to the London Stock Exchange for the new Shares, which rank pari passu with the Company's existing issued Shares, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on 3 January 2013.

For further information contact:

Enquiries: Andrew Bell 020 7402 4580 or    07766 474849 Regency Mines plc Chairman Sandra Spencer 020 7402 4580 or 07757 660 798 Regency Mines plc Public and Investor Relations Gerry Beaney/ Daniela Amihood 020 7383 5100 Grant Thornton Corporate Finance Nominated Adviser Nick Emerson 01483 413500 Simple Investments Ltd Broker

 

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