27 Feb 2017 11:47
REGENCY MINES PLC
("Regency" or the "Company")
Coal - Update
27th February 2017
Regency Mines Plc announces, further to the announcement of 6th February 2017, progress at Carbon Minerals Corporation's Rosa metallurgical coal mine ("CMC" and "Rosa") located in Alabama, United States of America, in the Warrior Coal Basin, including the signing of coal offtake agreements. Regency owns 20% of CMC.
Key Highlights:
· A sales contract for the metallurgical coal and a sales contract for fines have now been signed by CMC, with other contracts available;
· Progress remains on schedule at Rosa for coal sales in Q1 2017 as reported in previous announcements;
· Contract washing of coal in the preparation plant is under way and will from this week be in continuous operation at an increased rate following installation of new pumps;
· The highwall miner is now on site and will shortly start producing coal to stockpile and for testing, until later in March when sales to third parties on a pick-up basis are scheduled to start with a targeted initial production at over 1,000 tpd;
· The new joint venture company Vali Carbon Corporation for development of other coal opportunities in the Appalachians is completing corporate documentation and has identified a suitable area permitted for strip mining where production with potential sales volumes in excess of those at Rosa is planned once plant has been sourced and hired.
Andrew Bell, Chairman of Regency Mines, comments: "The positive attitude of the new U.S. Administration towards coal development has already begun to manifest itself in measures announced and under way. Industry-wide, coal demand continues strong, and the Rosa coal's historic premium in the market makes this an easy product to sell at the moment. Permit adjustments and the contracting of a suitable highwall miner will enable CMC to extract coal that would not have been accessible with an auger drill and so increase mineable volumes in the first permitted phase, while the next 3000 foot section has now also been permitted. Further expansion possibilities for both reserves and production are being identified.
These factors are combining with good progress on the ground to create a most encouraging picture. We will update the market on production during March, and expect to report fully on the Vali Carbon Corporation investment in the near future."
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.