19 Dec 2019 07:00
Regency Mines PLC
("Regency" or the "Company")
Energy Storage : Partner Buy Out
19 December 2019
Regency Mines Plc (LON: RGM) the battery metals and energy storage company announces the buy-out of its 20% shareholders in its UK energy storage business, Allied Energy Services Ltd. Regency is strategically focused around battery metals, including its flagship Mambare nickel-cobalt project and its existing UK energy storage business.
The Company views energy storage as a critical component of the energy transition as power networks and energy markets evolve to accommodate changing demand and supply profiles, decarbonisation and the emergence of EVs. With the increasing focus on security of supply for UK businesses, Regency is positioning itself as a first mover in the UK energy storage space, complementing its existing interests in battery metals. Regency currently owns 80% of its UK energy storage business, Allied Energy Services Ltd. ("AES"), through its 100% owned subsidiary, EsTeq Ltd.
The Company announces that, in anticipation of material project progress and as a first step to simplify its partner arrangements across the business, it has agreed to buy out its minority 20% shareholders. In exchange for selling their 20% stake in AES to Regency, the minority shareholders will be issued 2,461,538 new ordinary shares in the Company following the 1 for 100 consolidation expected to be implemented on 24 December 2019, locked in for six months with further share issues (up to a maximum of £80,000 calculated using the 10-day volume weighted average price) being made in the event of AES securing approximately £30m of funds for the Southport Energy Centre at the special project vehicle ("SPV") level, and Regency trading at a market capitalisation of at least £10 million for five consecutive trading days.
The Company has a series of UK based energy storage projects already identified. The first of these involves installing a "Peaker Plant" at a development site near Liverpool, the Southport Energy Centre. These plants ease pressure on power grids by levelling out imbalances in supply and demand, generating and selling electricity when prices are high and buying and storing electricity when prices are low. The initial specification of the project involves the installation of up to 9MW of gas-powered electricity generation accompanied by the installation of containerised batteries with 2MW of storage capacity. It is anticipated that the project can achieve first revenue within a short timeframe, with anticipated revenue streams from electricity trading, Short Term Operating Reserve ("STOR"), Enhanced Frequency Response and Private Wire electricity sales.
Scott Kaintz, CEO, commented: "I am delighted to report the first of many shaping moves as our new Executive team look to accelerate first revenue from our core projects."
For further information, please contact:
Scott Kaintz 020 7747 9960 Director Regency Mines Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 020 7374 2212 Broker First Equity Limited
This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.