Deal RGM

Regency Mines Plc (“Regency”) is a natural resource development and investment company with interests in oil and mineral exploration.

Regency is raising up to £110,000, before costs, at 0.9p per share. For each new share subscribed for Regency will also issue one (1) new warrant to subscribers, with an exercise price of 1.8p per share, exercisable for two years. This deal will be open between 5pm on Friday 05 May and 0600 on Monday 08 May unless closed earlier.

Note that any applications may be subject to scale back. If this occurs it will be applied pro rata on the basis of application size.

Summary of the company’s operations:

  • Regency has a 20% shareholding in Carbon Minerals Corporation (“CMC”), a Delaware company which has acquired the Rosa metallurgical coal mine (the “Rosa Mine”) located in Alabama, United States of America in the Warrior Coal Basin. Regency anticipates announcing commercial production at Rosa in the very near term.
  • Regency owns a 20% stake in Vali Carbon Corporation (“VCC”). The VCC property is a 5,500acre property containing a metallurgical coal mine with significant coal deposits (so far not compliant with the codes for public company reporting of coal resources and reserves) in multiple seams of the Lee Formation of the Pennsylvanian Period, where production is expected to begin shortly. Regency has identified an accelerated pathway to commercialisation.
  • Regency owns a 3.25% indirect stake in the oil exploration project known as Horse Hill. This includes PEDL 137 and PEDL 246, covering a gross area 143km2 in the Weald Basin of the United Kingdom.
  • Regency has subscribed for 21,875 shares of Westport Energy, a UK based company currently finalizing the acquisition of gas assets located in the Pacific Northwest, for a total consideration of £175,000 via a pre-IPO funding round. Regency intends to increase its investment in Westport at the time of its planned IPO in Q1 2017.
  • Regency owns 100% of the Motzfeldt license area 2014/01 covering 555km2 in Narsarsuaq in Southern Greenland, which includes undeveloped Niobium-Tantalum deposits with additional Rare Earth credits. Motzfeldt has a JORC Inferred Mineral Resource Estimate of 340mt @ 120ppm Ta2O5, 1850ppm Nb2O5 and 4600ppm Zr02.
  • Regency owns 50% of the Mambare license EL1390 covering 256km2 near Kokoda in Papua New Guinea. Mambare is a Nickel-Cobalt laterite deposit, Mambare has a JORC Resource of 162.5 million tonnes @ 0.94% Ni and 0.09% Co (1.53 million tonnes of nickel)

Key risks Description
Market and Funding Risks
  • Continued Access to Equity and Debt Capital to Maintain Solvency and to Fund Operations
  • Excessive Cost of Available Capital – Interest Rate Fluctuations – Discounted Equity Offerings
  • Currency Volatility in the UK and in Currencies in Which the Company Operates
  • Deterioration in Commodity Prices
  • Company Share Price Volatility
  • Commodity Investor Risk Appetites
  • Low World GDP Growth– Perceived Demand for Commodities May Decline
  • Natural Resource Market Sentiment
  • Perceived Oversupply of Certain Commodities
Geological Risks
  • Base Probability of Exploration and Development Success
  • Time and Monetary Costs of Drilling Unsuccessful Prospects
  • Low Rate of Deposits and Reserves Developed from Targets
  • Geological Setting Variations and Data Uncertainties
  • Style of Mineralisation and Variability of Geological Targets
  • Grade/Tonnage Issues – Failure to Achieve Economic Deposits or Reserves During Development
  • Uncertainty Over Recoverability of Reserves
Operational Risks
  • Operational and Development Cost Variability and Uncertainty
  • Natural Resource Policy and Regulatory Changes
  • Impact Operations
  • Social License to Operate – Permitting and Approvals May be Denied and/or Delayed
  • Resource Nationalism – Threatens Project Ownership During Development
  • Infrastructure Access – Poor Infrastructure May Require Government Upgrades and Investment
  • Staffing and Expertise – Key Geological and Operation Staff May be Difficult to Recruit and Retain
  • Breakdowns of Key Plant and Equipment – Mechanical and Technical Problems
  • Extreme Weather Conditions at Operational Sites May Delay or Increase the Cost of Operations
  • Exposure to and Reliance on the Performance of Operating and Joint Venture Partners

If you are buying outside of market size this may prevent you from selling the shares at market price.

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