LONDON (Alliance News) - Regency Mines PLC Tuesday said it has raised GBP327,100 through a placing of 116.8 million new shares and convertible placing shares with institutional and private investors at GBP0.0028 per share, with the proceeds to go towards oil and gas exploration at the Horse Hill well in Surrey, and for working capital purposes.
The shares will be issued in two tranches, with the first tranche being made up of 60.5 million shares and the second 56.3 million, said the company.
Of the first tranche, 47.6 million shares will be arising from the conversion of 47.6 million convertible placing shares of the company.
"The market has been expecting a placing of shares to fund our investment in the Horse Hill-1 well in Surrey which is expected to spud shortly. We felt that this expectation was holding us back and that it was best to eliminate any uncertainty by funding now. Our holdings in Ram Resources in Australia and in Alba Mineral Resources PLC continue to perform well and are potential additional sources of further liquidity. We will continue to control costs and to negotiate with potential partners in relation to our nickel interests," Chairman Andrew Bell said in a statement.
Regency Mines shares were Tuesday quoted down 5.5% at 0.284 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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