Information  X 
Enter a valid email address

Regency Mines PLC (RGM)

  Print      Mail a friend

Tuesday 07 April, 2020

Regency Mines PLC

Mambare Project - Resolution of Partner Dispute

RNS Number : 0296J
Regency Mines PLC
07 April 2020

Regency Mines PLC

("Regency" or the "Company")


Mambare Nickel-Cobalt Project - Resolution of Partner Dispute


7 April 2020

Regency Mines Plc (LON: RGM), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces further to the announcement of 22 January, resolution of the ongoing partner dispute and the execution of an amendment to its development agreement regarding the Company's Mambare nickel-cobalt asset in Papua New Guinea. 



Mambare Joint Venture ("JV") partners agree to an amended joint venture agreement to govern and drive forward future activities with operations based in Australia

Regency agrees to a revised 41% interest in the joint venture with further reduction occurring if a mining lease award over the Mambare project is recommended by the relevant PNG government agency in the next 19 months

Battery Metals Pty Ltd ("BMA"), the Company's JV partner, to receive from Regency US$50,000 in cash, 4,909,610 new ordinary shares in RGM and 4,909,610 warrants (issued and exercisable at £0.01245)


Scott Kaintz, CEO, commented :

"Settlement of the partner dispute with BMA was the final step in clearing up the legacy issues at Mambare.  Regency retains a significant 41% interest in the joint venture, has strong partner alignment and is focused on securing the mining lease, which is a significant value inflection point for the project and for Regency. The resolution may also pave the way for the partners to explore new opportunities together."


Project Update: 


The ground penetrating radar programme ("GPR") begun in late 2019, was substantially advanced during Q1 2020 with field work for 250-line kms of GPR completed.  This completes most of the exploration work planned for this calendar year. 


Oro Nickel, the JV company, is currently progressing a plan to upgrade the existing exploration licence to a mining licence based on a direct shipping ore ("DSO Operation").  This DSO Operation would consist of excavation and export of raw ore so will involve no processing plant, no chemicals, no pipeline and no tailings.


An application to renew the EL1390 exploration licences, encompassing the project, was submitted to the PNG authorities in March 2019 and is expected to be renewed during 2020 covering the period up to June 2021.  Oro Nickel continues to advance work on both the proposed Mining Lease and environmental permit.


JV Development Agreement:


Following engagements with BMA during Q1, Regency has agreed to a series of changes in recognition of the historic costs incurred by BMA on behalf of Oro Nickel.  The parties have agreed to increase BMA's stake in the JV to 59% with immediate effect with a further 6% interest to be awarded if, prior to November 2021, the Mambare JV receives a recommendation to award a mining lease from the Mining Resource Authority in Papua New Guinea.  The award of a mining lease would represent a critical value inflection point for the project and for Regency. Regency will also pay to BMA US$50,000 in cash and US$50,000 in shares (£40,750) at a price of £0.0083, resulting in the issuance of 4,909,610 new ordinary shares ("Consideration Shares") in the Company.  4,909,610 three-year warrants, priced at £0.01245, are also to be issued.


If on or before 30 October 2020, Regency issues new ordinary shares or securities convertible into shares at a price (the "Revised Price") more than 5% lower than £0.0083, Regency shall issue additional consideration shares and warrants within 14 days of a request by BMA to do so.  These additional shares shall be for the difference between the quantity of shares equating to £40,750 divided by the Revised Price minus 4,909,610.  An equivalent number of additional warrants priced at £0.01245 would also be issued in this event. 


Both parties have agreed that all litigation between them will cease immediately and a revised joint venture structure and development plan has been created with the centre of gravity in Australia, leveraging BMA's logistical advantages and regional proximity.


Admission to Trading on Aim and Total Voting Rights:


Application is being made for the Consideration Shares, which when issued will rank pari passu with the existing ordinary shares in issue, to be admitted to trading on AIM, which is expected to be on or around 15 April 2020 ("Admission").

Following the issuance and admission of the Consideration Shares, the Company's total issued share capital will consist of 94,726,162 Ordinary Shares.  As from Admission, this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company pursuant to the FCA's Disclosure Guidance and Transparency Rules.

For further information, please contact:

Scott Kaintz 020 7747 9960  Director Regency Mines Plc

Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396  NOMAD Beaumont Cornish Limited

Jason Robertson 020 7374 2212    Broker First Equity Limited


This announcement contains inside information under Article 7 of Regulation (EU) 596/2014 .


Notes to Editors on the Mambare Project:

Mambare project sits on exploration licence EL1390 in Papua New Guinea

JORC compliant Resource totalling 162.5 million tonnes of 0.94% nickel and 0.09% cobalt (1.53 million tonnes of in-situ Nickel and 146,000 tonnes in-situ Cobalt) stated gross.

Current JORC compliant Resource is in respect of slope areas and a small part (3%) of the mineralised plateau


The Mambare project site is located near the village of Botue, approximately 90km north east of Port Moresby.  The area is linked to Popondetta and Oro Bay by gravel and sealed roads. 

The Mambare Plateau is an elevated 20 by 7-kilometre paleo-plateau in the Ajule-Kajale Range, developed on ultramafics. These ultramafics are overlain by gabbroic rocks and submarine basaltic volcanics. 


Whilst the project has a long history of exploration digging, it remains largely unexplored with exploration activities to date covering only 3% of the plateau.  Pre 1960s exploration consisted of test pitting and hand augering with at least one bulldozer trench being dug. Between 1960 and 1971, 240 auger holes were drilled, and 56 pits and one costean dug.  Between 2008 and 2011 exploration campaigns included 7,291m of drilling from 455 holes and 5 test pits, including GPR surveys.  The programmes conducted between 2008-12 covered only 3% of the Mambare Plateau, the primary long-term exploration target. 



This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit

a d v e r t i s e m e n t