20 Sep 2016 07:00
Regency Mines Plc
("Regency" or the "Company")
Disposal of Interest in Tenements
20 September 2016
Regency Mines plc announces the sale of its remaining direct interest in the Tenements (as defined below) comprising its Fraser Range Project in Western Australia to Ram Resources Ltd (ASX:RMR)("Ram") for AUD 100,000.
Highlights
· Regency surrenders conversion rights of its remaining 4% direct interest in Tenements into Ram shares for AUD 100,000 cash
· Carrying cost of AUD 3,906 in Regency audited accounts at 30 June 2015
· Additional consideration to Regency of 16,666,666 four year options to buy Ram shares at AUD 0.006 per share
· Regency retains performance shares and a 1% gross revenue royalty interest in Tenements
· Regency has first right of refusal in event of disposal of Tenements
Andrew Bell, Chairman, comments: "This disposal completes the process of monetising our interest in the Fraser Range Tenements, and leaves us with exposure to upside both at Ram and at the Tenements themselves.
We see continuing potential in the area, and have ensured that we will be able to get the project back if it is dropped or disposed of by Ram."
Background
In 2012 Regency announced, and in 2013 completed, the sale of 80% of its interest in three recently acquired exploration licenses in the Fraser Range area of Western Australia, E28/2210, E28/2209, and E63/1528 (the "Tenements"). A 20% direct carried interest in the Tenements was retained, and was capable of being converted into Ram shares at the same time and on the same terms as any funding by Ram at the rate of AUD 50,000 per 1% of the direct carried interest.
Regency over time converted all but 4% of that carried interest, disposing of the Ram shares so acquired, so that before the current transaction Ram held a 96% interest in the Tenements. This was announced in a series of announcements of which the last was on 25 November 2015, when Regency announced the sale of the last 59,516,530 Ram shares still held by it for proceeds of AUD 118,437.89.
For further information, please contact:
Andrew Bell 0207 747 9960 or 0776 647 4849 Chairman 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.