Ram Resources - successful close of funding

RNS Number : 6868E

Regency Mines PLC

14 April 2014

 



REGENCY MINES PLC

("Regency" or the "Company")

Ram Resources - successful close of funding

14 April 2014

Regency Mines Plc ("Regency" or the "Company"), the mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Papua New Guinea and Sudan,  reports progress on the funding announced by its associate company Ram Resources Ltd (ASX:RMR)("Ram") on 26 February 2014.

Highlights

·     AUD 1,500,000 raise by placement at 0.8c of up to 187.5m new Ram shares in two tranches with attaching warrants on a 1 for 2 basis exerciseable at 2.5c up to February 2017

·     Ram shareholders approve issue of second tranche of up to 157.5m placement shares

·     1.9x oversubscription of simultaneous share purchase plan (SPP) on same terms to raise a further AUD 700,000

·     Ram shareholders approve issue of up to 40,625,000 Ram shares to Regency

·     Regency notifies Ram of intent to convert a further interest of up to 35,000,000 new Ram shares

At a Ram shareholders' meeting held on 8 April 2014 all resolutions were passed, allowing the second tranche of the placement, the issue of shares to Regency on the conversion of part of their carried interest, and the SPP to proceed.

On 11 March 2014 Ram announced that the SPP had closed oversubscribed, raising the full AUD 700,000 available, with subscriptions received for over AUD 1,300,000.

The full announcement by Ram is available on: http://www.asx.com.au/asxpdf/20140411/pdf/42ny9l0r8jjbdw.pdf 

In the light of the further issue of RAM shares under the SPP, Regency has exercised its right to convert part of its carried interest in the Fraser Range tenements at the same price as the issue and at the rate of AUD 50,000 for each 1%, provided the effect of such conversion is not to breach takeover rules in Australia (which in this instance means remaining below a 20% holding in Ram). Regency has today given notice of conversion of a further 5.6% of its carried interest and will confirm its new shareholding in Ram in a further announcement which is to be made in due course.

Regency Chairman Andrew Bell comments: "In a strong market for Ram shares the placings have closed with the oversubscription of the SPP showing strong shareholder support. We congratulate the Ram board. Our strategy of placing our Fraser Range tenements in an Australian listed vehicle so that it could gain a local following and an autonomous funding capacity has been fulfilled and vindicated. We have now given notice of exercise in respect of 12.1% of our total carried interest of 20% in the Fraser Range Project, and expect to retain post all issues of Ram stock a 19.9% shareholding level."

Background on Ram and the Fraser Range Project

Ram (ASX:RMR) is a company in which Regency currently owns 54,771768 shares, or 16.5% of the enlarged Ram capital after issue of the first tranche of Ram placement shares but before the other transactions contemplated pursuant to the recent placement and SPP. In addition Regency has a 1% gross production royalty over, and a 20% carried interest in, its Fraser Range project, located near the Sirius Resources' Nova deposit in Western Australia.

Enquiries: Andrew Bell 020 7747 9960 or 07766 474849 Chairman Regency Mines plc Colin Aaronson/David Hignell 020 7383 5100        NOMAD Grant Thornton UK LLP Nick Emerson 01483 413500 Saif Janjua 020 7382 8415 Rupert Trefgarne 02031288817 Natasha Walton 020 7747 9960 Broker SI Capital Ltd Joint Broker Beaufort Securities Ltd Media Relations MHP Communications Investor Relations Regency Mines plc

 

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