LONDON (Alliance News) - Regency Mines PLC Wednesday said it has raised GBP350,000 in a share placing with institutional and private investors, with the proceeds earmarked for expenditure in Sudan, the nickel joint venture in Papua New Guinea, and working capital purposes.
In a statement, Regency Mines said it raised the funds by placing 159.1 million shares at a price of 0.0022 pence each.
Dealings in the shares are expected to begin on May 20.
Following the placing, Regency Mines' will have 1.48 billion shares in issue. No shares are held in treasury.
"This placement follows the recent notice of conversion of interests in Australia to Ram Resources shares, and together with that conversion gives a new robustness and financial visibility to the company," Chairman Andrew Bell said in a statement.
"We welcome some new and supportive shareholders who share our confidence in the prospects of the company. We will continue to control costs and are seeking ways to benefit from the sharp recovery in the nickel market, whose prolonged weakness has until recently hindered our strategic development and that of our partners," Bell added.
Regency Mines shares were Wednesday quoted at 0.23 pence, down 8%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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