Issue of Equity and Update on Alabama Coal JV

RNS Number : 4554B

Regency Mines PLC

04 April 2017

 

REGENCY MINES PLC

("Regency" or the "Company")

Issue of Equity and TVR

Holding in Company

Update on Alabama Coal JV

4 April 2017

Regency Mines plc announces that it has raised £320,204.93 by means of a placing of 32,020,493 new ordinary shares of 0.01 pence each ("Shares") in the Company at a price of 1.0p per share with 1 for 2 warrants exercisable at a price of 1.3p for eighteen months ("October 2018 Warrants" and "Placing").

The purpose of the Placing is to enable the Company to continue advancing its metallurgical coal interests in the Appalachians towards production on an accelerated timeframe.

Further Information and Additional Terms

The Placing and the issue of the October 2018 Warrants are conditional on admission of the Shares to trading on AIM ("Admission").

Application has been made to the London Stock Exchange for Admission of the Shares, which will rank pari passu with the Company's existing issued Ordinary Shares. Dealings are expected to commence at 8.00 a.m. on or around 10 April 2017.

Total Voting Rights

Following the Placing, the Company's total issued ordinary share capital will consist of 516,918,631 Shares with voting rights.  No Shares are held in treasury.

The above figure of 516,918,631 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Holding in Company

Following the placing, Mr Stephen Moscicki ("SM") will have a total holding of 32,020,493 Shares in the Company, or approximately 6.19% of the enlarged share capital.

Update on Alabama Coal JV

On 16^th March, 2017 Regency announced an unincorporated Joint Venture ("JV") over a metallurgical coal property of approximately 6,500 acres in northeastern Alabama (the "Property") with a view to bringing it into early operation. The JV is in the proportions 25% Regency and 75% SM.

A Supplementary Agreement has now been signed between the Company and SM pursuant to which Regency has contributed US$400,000 to the costs of acquisition, permitting, and preparation of the Property.

Further information on the Property

The Property of approximately 6,500 acres is located in Jackson County, northeastern Alabama directly north of Stevenson, Alabama, from which barge transportation is available to the coal export port of Mobile, Alabama and to New Orleans.

The Bledsoe Mountain area is within the Pennslylvanian Pottsville Formation and has a record of coal production. Reserve estimates and coal quality analyses have been carried out, but those so far available are not compliant with current standards for public disclosure.

Andrew Bell, Chairman of Regency Mines, comments: "The Property appears to contain substantial metallurgical coal deposits in thick seams suitable for contour and highwall mining.

The scale potential appears significant and we are pleased to have secured this project where we plan to take an active part in development. Our co-operation with our partner Stephen Moscicki has enabled us to proceed with confidence and we welcome him as a shareholder. 

The improved prospects for the coal sector make this an attractive area within which to focus our efforts. Our other metallurgical and specialist coal projects continue on track towards production." 

Background

Regency has interests including coal bed methane and oil exploration, and is now bringing into production metallurgical coal projects in the Appalachian coal belt in the Eastern United States. The Appalachians have long been one of the world's largest sources of coal, and some areas contain high quality metallurgical coals.

Regency has two existing projects, one already operating and where commercial production is about to begin, and one where production is expected within three months.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Andrew Bell 0207 747 9960                                                  Chairman Regency Mines Plc

Scott Kaintz 0207 747 9960                                                   Executive Director Regency Mines Plc

Roland Cornish/Rosalind Hill Abrahams 0207 628 3396    NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744                                           Broker Dowgate Capital Stockbrokers Ltd.

 

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