(Alliance News) - Regency Mines PLC on Thursday unveiled board changes, a proposed placing, share consolidation and restructuring of the company's balance sheet.
Shares in the exploration and development firm were up 27% at 0.0414 pence in London on Thursday.
Regency also said that C4 Energy Ltd, a UK incorporated private company, part controlled by proposed new chair James Parsons, has secured an option to acquire Regency's remaining debt.
Parsons is non-executive chair of Echo Energy and Coro Energy.
Regency has proposed to raise GBP831,000 via a placing of 3.02 billion new shares at a price of 0.0275p each. Alongside the placing, an additional 530.0 million shares, representing obligations of GBP145,785, have been issued to Red Rock Resources PLC in "full extinguishment of outstanding obligations".
The company also said partial conversion of promissory notes will result in the issue of 2.60 billion shares, while holders of GBP281,113 in outstanding convertible loan notes have agreed to convert these into 1.02 billion shares.
Following all this, the company will have 8.69 billion shares in issue.
"The directors consider that it is in the best interests of the company's long-term development as a publicly quoted company to have a smaller number of shares in issue and a higher share price," the company said.
Thus, at a general meeting Regency will ask shareholders to consider a share consolidation whereby every 100 shares are consolidated into one new share.
By Lucy Heming; lucyheming@alliancenews.com
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Echo Energy (ECHO)
Coro Energy (CORO)