26 Jul 2013 09:50
REGENCY MINES PLC
("Regency" or the "Company")
Fraser Range Project - Update
26 July 2013
Regency Mines plc, a mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Africa, and Papua New Guinea announces an update on its Fraser Range Project in Western Australia.
Further to the Company's announcement of 1 July 2013 in relation to the sale of an interest in the Fraser Range Project to Ram Resources Ltd (ASX:RMR)(("Ram"), Ram announced today that it has entered into a mandate letter with CPS Capital Group Pty Ltd to act as lead manager to a AUD1,500,000 capital raising through the placement of 5 billion fully paid ordinary shares in Ram at an issue price of AUD0.0003 per share ("Placement"). The funds raised by the Placement will be applied to further Ram's exploration at the Fraser Range, and for other purposes. A Ram shareholder meeting will now be called to approve the Placement, a 30 to 1 consolidation of the issued capital of Ram, and other matters.
The full text of the announcement is available at: http://www.asx.com.au/asxpdf/20130726/pdf/42h84slpbdphnx.pdf
A further announcement by Ram comprises a Powerpoint presentation on the Fraser Range project. This is available at: http://www.asx.com.au/asxpdf/20130726/pdf/42h85hgw4pbw3c.pdf
The details of the disposal by Regency to Ram of the Fraser Range Project were provided in the announcement by the Regency on 1 July 2013. For the avoidance of doubt, the initial share consideration to Regency of 19.9% of the enlarged outstanding capital of Ram will be computed on the total issued capital of Ram following the completion of the Placement and the other issues of stock referred to in the Ram announcement.
Regency Chairman Andrew Bell states: "This cash raising by Ram will, if completed, fulfil a remaining key condition of the disposal terms. Sirius Resources NL, our neighbour at Fraser Range, on 24th July 2013 announced positive results from the nearby Yardilla prospect, and exploration activity in the Fraser Range continues to be a focus of investor interest in Australia. We are pleased that Australian investors will now have in Ram an Australian-listed entity with Australian directors holding Regency's Fraser Range exploration assets."
Enquiries:
Andrew Bell 020 7747 9960 or 07766 474849 Chairman Regency Mines plc
Sandra Spencer 020 7747 9960 or 07757 660 798 Investor Relations Regency Mines plc
Colin Aaronson / Daniela Amihood 020 7383 5100 NOMAD Grant Thornton Corp Finance
Nick Emerson 01483 413500 Broker Simple Investments Ltd