RGM.L Regulatory News (RGM)

28 Nov 2006 14:29

Regency Mines PLC28 November 2006 Regency Mines plc Final audited results year to 30 June 2006 Dated: 28 November 2006 The year to 30 June 2006 saw several significant developments. Some have beenpreviously reported in the interim statement in March, but I shall brieflyrecapitulate. Corporate events - Half Year to 31st December 2005 On 29 July 2005 the company's new subsidiary, Red Rock Resources plc, saw itsshares admitted to trading on AIM. Red Rock Resources plc listed with aportfolio of Australian iron ore and manganese properties, predominantly inwestern Australia, and has since supplemented these with properties in theNorthern Territory of Australia, Zambia, and Malawi. The additional propertiescontained further manganese and iron ore prospects, but also some uranium andgold mineralisation and a magnesite resource. Corporate events - Half Year to 30th June 2006 and post-balance sheet period In May 2006 the company acquired for £45,000 a 75% interest in a 584 sq kmexploration license covering the Mambare plateaus in Papua New Guinea. Theplateau lies at 700m elevation adjacent to the Kokoda road, was explored forlateritic nickel in the 1960s with encouraging results, and had the obviouspotential to host a major deposit. It therefore complemented the company'ssulphide nickel interests in Western Australia. On 3 July 2006 shares in Greatland Gold plc, a Tasmanian gold explorer in whichthe company had earned an interest by assisting with the listing process, wereadmitted to trading on AIM. On 28 June 2006 the company announced an immediate private placement of4,786,666 shares at 1.875p per share, together with an expected further placing,and its agreement to subscribe for placings in Red Rock Resources plc andSunvest Corporation Ltd. The second tranche of 7,150,544 shares was completedon 3 August 2006. We welcomed to the board in June Pedro Kastellorizos, BSc, aged 32, as alternateto Andrew Bell and Technical Director. Pedro has ten years of experience inexploration, management, and tenement administration, including a period workingin the Titles Division of the Northern Territory Resources Department, andservice as Group Exploration Manager at Tennant Creek Gold Limited andExploration Director at Batavia Mining Limited. At this year's AGM we propose to amend the Articles of the company so thatdirectors retire by rotation, and so bring our Articles into conformity with thenorm for publicly listed companies. At 30 June 2006 the market value of the Company's holding in Red Rock Resourcesplc was £1.278m; on 20 November 2006 the value was in excess of £2.1mrepresenting 97% of the market value of the Group. Exploration In the first half of the year, as previously reported in the interim statement,exploration was carried out at the company's Bundarra copper-gold property inQuensland which surrounds a 15km by 10km granodiorite pluton. Soil sampling on200 by 80m centres produced some significant results including 3.1% copper with0.9 g/t gold and 10.8 g/t silver, and subsequently a 3,033m RAB drillingprogramme of 104 shallow holes was undertaken in July and August 2006. Some drill locations had to be changed because of steep terrain, and we concludethat if future drilling is to address adequately the areas close to thegranite-hornfels contact at the pluton edge where prospects for high grademineralisation may be best, the generally greater relief in these areas willrequire preparation of access roads and drill locations. The RAB drillingprogram however identified several areas of interest which warrant further work,and a 1.37% copper intersection with specular haematite at 23 to 24m in the IronDuke area indicates the potential for copper mineralisation associated with richhaematite units. No base metal exploration work in the area has previously beenconducted over hematite rich units. In the South Isens area up to 0.66 g/t goldwas encountered at 26-27m. Further drilling is also warranted at Iron Duke to test continuations of theanomalous copper zones and at several others of the prospects to test thegranite/hornfels contacts. The McFadzens and Mt Flora areas show very strongcopper mineralisation as previous exploration results indicate potentialreserves of 250,000t @ 2.74% Cu based on 6 drill holes. Mt Roger is anotherprime copper-gold target to the south of the tenement in which little drillinghas been conducted. Also numerous high grade thin copper lodes are located ontopographic high ridges to the north of the Flora Range Areas 1 and 2 whichrequire further drilling to test the continuity of the lode systems along strikeand depth. These copper lodes are classified as high grade and have thepotential to the mined on a small scale as historical mining is evidentthroughout the Bundarra tenement area. The variety of targets and potential mineralisation styles at Bundarra requirescontinuous reappraisal to identify the most cost-effective and promising wayforward. The tenement remains one of considerable interest and prospectivity. Reconnaissance exploration was carried out on the company's Mt Stone goldprospect in Queensland, and epithermal alteration was noted in surface exposuresin several areas. Future exploration of this area will follow up the potentialfor epithermal mineralisation. In September, extremely encouraging results from our exploration programme atthe recently acquired Mambare Plateau project were announced. In 1999 AnacondaNickel Ltd reviewed the data over a 158 sq km area of the Mambare Plateau andestimated two limonite resource potentials: 630 Mt at 0.78% nickel with a 0.5%cut-off and 200 Mt at 1.01% nickel with a 0.8% cut-off. We created a data base of the historical data with ground truthing, locating andsurveying and in some cases re-sampling the old pits, and creating sevenhelipads. Sampling results showed good correlation with previous results, with 19 of the48 samples grading over 0.8% nickel and 11 grading over 1% nickel. The 1971 sampling, and that carried out this season, tested systematically forcobalt and the data indicate that over 500 ppm Co is very common in themineralized limonite sections, with one re-sampled hole grading 0.12%. A cobaltpotential of approximately 0.1% can be added to the previous estimates of nickelmineralization in the limonitic layer. The old auger drilling and pitting didnot intersect much of the underlying and generally higher grade saprolite ore.This resource potential may be similar to that of the limonite ore and can alsobe added to the potential indicated by Anaconda. This resource potential can be summarised as: Limonite Ore 200 Mt of 1% nickel and 0.1% cobalt and Saprolite Ore 200 Mt of 1.25-1.5% nickel. Outlook In the interim report I stated that we looked to the future with confidence.That remains the case. On the corporate front, we expect developments from ourinvestments in other companies and possible future listings. We expect to conduct further exploration at Mambare, and are in discussions withpossible partners in this regard. Our overriding aim is to increase shareholder value. One task that we must nowundertake is to bring market perceptions of the company closer to where we feelthey ought to be. Presenting our story to the Press and public will be a highpriority in the period ahead. Andrew R. McM. Bell Chairman 24 November 2006 The Directors do not recommend the payment of a dividend. The following statements are extracted from the audited financial statements. Consolidated profit and loss account for the year ended 30 June 2006 Year ended Period 30 June 2006 10 September £ 2004 to 30 June 2005 £ Turnover 234,384 -Cost of sales 44,200 -Gross profit 190,184 - Exploration costs (89,815)Administrative expenses (276,506) (108,070)Currency gain 90 -Operating loss (176,047) (108,070) Interest receivable 6,625 -Interest payable (31) -Loss on ordinary activities before taxation (169,453) (108,070)Taxation (6,250) -Loss on ordinary activities after taxation (175,703) (108,070)Minority interests 69,882 2,433Retained loss for the period attributable to (105,821) (105,637)Shareholders of the Company Loss per share - basic (0.08) pence (0.13) pence Loss per share - fully diluted (0.08) pence (0.13) pence There are no recognised gains or losses other than the loss for the year. All the operations are considered to be continuing. Consolidated balance sheet as at 30 June 2006 30 June 2006 30 June 2005 £ £Fixed assetsIntangible assets 1,657,142 963,348Goodwill 45,000 1,702,142 963,348Current assetsDebtors 105,422 28,279Investments 48,540 44,200Cash at bank 230,076 154,334 384,038 226,813Creditors - amounts due within (80,941) (144,244)one year Net current assets 303,097 82,569 Total assets less current 2,005,239 1,045,917liabilities Share capital and reservesCalled-up share capital 129,897 125,110Share premium account 1,079,947 991,921Profit and loss account (203,711) (105,637) Other reserves 550,156 12,457 Equity shareholders' funds 1,556,289 1,023,851 Minority Interests 448,950 22,066 2,005,239 1,045,917 These financial statements were approved by the Board of Directors on 24November 2006. Company balance sheet as at 30 June 2006 30 June 2006 30 June 2005 £ £Fixed assetsIntangible fixed assets 612,843 579,292Investments 347,000 249,500 959,843 828,793Current assetsDebtors 189,023 120,432Investments 33,049 44,200Cash at bank 100,368 96,418 322,440 261,050 Creditors - amounts due within one (46,958) (26714)year Net current assets 275,482 234,336 Total assets less current liabilities 1,235,325 1,063,129 Share capital and reservesCalled-up share capital 129,897 125,110Share premium account 1,079,947 991,921Profit and loss account 25,481 (53,902) Equity shareholders' funds 1,235,325 1,063,129 These financial statements were approved by the Board of Directors on 24November 2006. Consolidated cash flow statement for the year ended 30 June 2006 Year ended Period ended 30 June 2006 30 June 2005 £ £ Net cash outflow from operating activities (333,707) (38,975)Returns on Investment and servicing of finance 6,594 -Capital expenditure and investment (195,012) (909,844)Cash outflow before financing (522,125) (948,819)Financing 597,867 1,103,153Increase in cash in the year 75,742 154,334 Profit attributable to parent undertaking During the year, the parent undertaking reported a profit of £79,383 aftermaking a provision for taxation. As permitted by Section 230 if the CompaniesAct 1985, no separate profit and loss account is presented in respect of theparent company. Loss per share - Group 2006 2005 £ £ The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue. Loss for the period (105,821) (105,637) Weighted average number of Ordinary shares of £0.001 in 125,136,824 78,013,246 issue (0.08) pence (0.13) pence Loss per share - basic Weighted average number of Ordinary shares of £0.001 in 133,136,824 81,413,246 issue inclusive of outstanding options Loss per share - diluted (0.08) pence (0.13) pence Notice is hereby given that the second Annual General Meeting of REGENCY MINESplc will be held at 115 Eastbourne Mews, Paddington, London W2 6LQ on 28December 2006 at 11.00 am for the purpose of considering and, if thought fit,passing the following resolutions 1 to 6 which will be proposed as ordinaryresolutions and resolution 8 as a special resolution. ORDINARY BUSINESS 1 To receive the report of the Directors and the audited financial statements of the Company for the year ended 30 June 2006.2 To re-elect as a Director of the Company Andrew Ronald McMillan Bell who retires by rotation and, being eligible, offers himself for re-election.3 To re-elect as a Director of the Company Kenneth Frank Watson who retires by rotation and, being eligible, offers himself for re-election.4 To re-elect as a Director of the Company Julian Michael Edward Lee who retires by rotation and, being eligible, offers himself for re-election.5 To re-elect as a Director of the Company John Watkins who retires by rotation and, being eligible, offers himself for re-election.6 To re-elect as a Director of the Company Pedro Kastellorizos who retires by rotation and, being eligible, offers himself for re-election.7 To re-appoint Chapman Davis LLP as auditors of the Company to act until the conclusion of the next Annual General Meeting and to authorise the Directors to determine their remuneration. SPECIAL BUSINESS 8 SPECIAL RESOLUTION That the Articles of Association be amended by inserting the following wording to the end of regulation 18.2: "Subject to the provisions of the Act and of these Articles, any Director so appointed shall retire from office at the annual general meeting of the Company next following such appointment and will then be eligible for election during such meeting and he shall not retire by rotation at such meeting or be taken into account in determining the rotation of retirement of Directors at such meeting." and by deleting regulation 18.4 in its entirety and inserting the following in its place: "At each annual general meeting, one-third of the Directors shall retire from office provided that: 18.4.1 if their number is more than three, but not a multiple thereof then the number nearest to but not exceeding one-third shall retire; 18.4.2 if their number is two, one of such Directors shall retire; and 18.4.3 if their number is one that Director shall retire; and a Director retiring at a meeting shall if he is not reappointed at such meeting retain office until the meeting appoints someone in his place or if it does not do so, the dissolution of such meeting.". It is anticipated that the Company will mail copies of the full report andfinancial statements to all shareholders on Monday 4 December 2006. Copies willalso be available from the Company's website and from the Company Secretary atthe registered office: 55 Gower Street, London WC1E 6HQ. Enquiries: Andrew Bell 07766 474849 Regency Mines plc Chairman John Watkins 01483 771992 Regency Mines plc Finance Director Ron Marshman / 020 7628 5518 City of London PR Limited Public Relations John Greenhalgh Updates on the Company's activities are regularly posted on Regency Mineswebsite, www.rrrplc.com. This information is provided by RNS The company news service from the London Stock Exchange