21 Dec 2018 09:43
Regency Mines Plc
("Regency" or "the Company")
EsTeq Limited Operations Update
21 December 2018
Further to the announcements of 22 December 2017 and 18 May 2018, Regency Mines Plc, the natural resource exploration and development company with interests in hydrocarbons and battery metals, announces an update on its 100% owned subsidiary, EsTeq Limited.
EsTeq was formed in 2017 to consolidate some of Regency's interests in, and pursue opportunities in, the battery storage, battery metals, and energy storage technology space.
EsTeq undertook its first investment in 2017 in Whitecar Ltd ("Whitecar"), a company currently operating white Tesla rental car services at UK and European locations. This investment gave it a fully diluted holding of 5.8% (now 5.584%) of Whitecar.
EsTeq has also committed £50,000 to the development of a new project in energy storage and trading and grid backup, under the name Allied Energy Services Ltd ("Allied Energy"), in which it holds 80%.
Allied Energy Highlights
· 20 year lease secured over first 0.94 acre site in Knowsley capable of hosting a 20MW facility; becomes unconditional upon offtake agreement and funding
· Land lease options secured over 3 farmland sites located in the Liverpool area (each capable of hosting a 25MW energy storage/generating facility)
· Heads of Terms agreed with a leading privately owned property, transport and logistics company for a 2 ha industrial site in Scotland (capable of hosting an initial 50MW energy storage/generating facility)
Allied Energy Operations Summary
· Pre-planning process initiated on all sites
· Design work for optimal facility layout initiated with leading battery storage technology & combined heat and power manufacturing companies
· Early discussions with blue chip clients on the potential of supplying their long term localised energy needs for both electricity and heat on long term power purchase agreements (minimum of 15 years)
· Early discussions with potential project finance partners underway
· Preliminary discussions with potential JV partner affiliated with Oxford University for co-location of R&D facility with potential financial support from Scottish Enterprise (for innovation in energy storage system design)
· All sites are being assessed and progressed simultaneously, with a view to commencing construction of the first facility during Q1 2019
Whitecar Highlights
· Whitecar now operating across UK and Norway from 6 locations
· Fleet now expanded to 32 cars
· New full-stack online platform launched to integrate billing, bookings, cost data and fleet management
· Recent Whitecar third party raise of £0.503m equity values Regency's original £400,000 investment at £462,000
· Regency protections (first right of refusal on fundings, downround protection, option) extended to April 2019
· Fully booked over Christmas period
· Discussions progressing with a significant number of strategic and industry partners
Whitecar Operations Update
Whitecar has had an active 2018 with new openings in the UK and overseas with total coverage of the Greater London area from multiple locations. Whitecar remains a pioneer in the field of EV (electric vehicle) rentals, with its proprietary app technology offering a one car/one price/all inclusive service to its customers, and is readying an expansion into Germany in 2019.
Joseph Jayaraj, EsTeq Executive Director, comments: "Whitecar continues to make progress. At Allied Energy, operations have progressed well during 2018, culminating in the first 20MW project site in Liverpool secured with a long-term lease and planning consent. Grid connection and project finance are expected to follow during Q1 2019.
We are excited by the potential of Esteq's maiden project site, which, together with a number of pipeline projects on the horizon, will assist in better managing the increased demands on UK energy infrastructure".
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information 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 020 7374 2212 Broker First Equity Limited