Loan Agreement

RNS Number : 9625W

Regency Mines PLC

29 November 2010

 



Regency Mines PLC

29 November 2010

Loan Agreement

Mambare and Direct Nickel

Movement to SETS

Regency Mines plc ("Regency" or the "Company") announces that it has entered into a loan agreement with YA Global Master SPV Limited ('YA Global'), which is advised by Yorkville Advisors LLC.

Under the agreement Regency has borrowed $2,000,000 from YA Global. The loan carries interest at 12% p.a. and is repayable in eight instalments with the last instalment due on 26 November 2011. The loan is secured under a Standby Equity Distribution Agreement ('SEDA') between Red Rock and YA Global entered into on 9 September 2009 and by security over certain liquid assets of Regency, including 30,000,000 ordinary shares in Regency's associate company, Red Rock Resources plc.

The loan will be used to finance Regency's investment in Oracle Coalfields announced on 12 November 2010.

Further to its announcement of 19 November, the Company now expects to make a further and fuller announcement on Mambare and its investment in Direct Nickel Pty Ltd later today.

The Company is also pleased to announce that with effect from today its ordinary shares are now traded on SETS (the Stock Exchange Trading System), the London Stock Exchange's Flagship electronic order book.

For further information contact:

Regency Mines PLC               Andrew Bell, Chairman                                0207 402 4580

                                               Sandra Spencer, Public and

                                               Investor Relations                                        0207 402 4580

Nominated Adviser

Religare Capital Markets         Peter Trevelyan-Clark/Ben Jeynes                020 7444 0800

Broker

Simple Investments Ltd            Nick Emerson                                             01483 413500

Updates on the Company's activities are regularly posted on its website www.regency-mines.com.

 

END

 

 

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