Memorandum of Understanding -

RNS Number : 9772Z

Regency Mines PLC

30 September 2009

 



REGENCY MINES PLC

Memorandum of Understanding - Update

Dated: 30 September 2009

Regency Mines plc ('Regency' or the 'Company'), the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea, announced the signing of a Memorandum of Understanding with Direct Nickel Pty Ltd ('DNi') on 19 August 2009 (the 'MOU') in relation to the Company's interest in the Mambare nickel-cobalt project in Papua New Guinea ('Mambare'). Under the terms of the MOU, the parties agreed to grant each other a period of exclusivity up to October 1, 2009.

Since the signing of the MOU, DNi has carried out a due diligence visit to Mambare, and teams from the two companies have been working closely together to assess new drill data, add and digitize other data, look at possible outcomes, and formulate exploration strategies.

This work is regarded as having been productive by both parties, and the exclusivity period has been extended indefinitely subject to one month's notice of termination on either side.

The parties entered into the MOU because they recognized the significant potential of both the Mambare project and of the DNi Process, and that putting the two together could maximize the value of each. The size and grade potential of Mambare on the one hand, and the technological leadership of DNi on the other, have become more evident to the parties over the last weeks and it is their intention to continue to work together on the next stages of development. Further announcements will be made in due course.

For further information contact:

Andrew Bell	0207 402 4580 or 07766 474849	Regency Mines plc	Chairman
Peter Trevelyan-Clark/Ben Jeynes	020 7489 4500	Blomfield Corporate Finance Ltd	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman /John Greenhalgh	0207 011 9411	Lothbury Financial Limited	Public Relations

 

END

 

 

MSCSDLFDSSUSELU