15 Jan 2013 13:04
Regency Mines Plc
("Regency" or the "Company")
Issue of Equity and Directors' Dealing
15 January 2013
Regency Mines plc announces that pursuant to a Special Advance (the "Special Advance") entered into by the Company under the Standby Equity Distribution Agreement announced on 20 June 2011, the Company has issued 86,901,333 new ordinary shares of 0.1p each (the "Shares") at a price of 0.7125 pence per Share to YA Global Master SPV ("YA Global") to raise £619,172 gross (the "Issue").
The net proceeds of £589,687.5 from the Issue will be applied towards exploration and for working capital purposes.
Pursuant to the Special Advance, a fee of £58,969 will be payable by the Company to YA Global in the form as follows: 4,138,175 Shares at a price of 0.7125 pence and £29,484.50 in cash ("the Fee").
It has also been agreed that the following Directors of Regency will purchase certain Shares of the Issue from YA Global at the same price, being 0.7125 pence per Share:
Name of Director | Number of Shares purchased
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Andrew R M Bell | 14,035,088
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John Watkins | 500,000
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Scott C Kaintz | 421,053
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Company Chairman Andrew Bell comments:
"Regency believes that a programme of deleveraging the business and putting the Company into a position where it can reduce its dependence on the markets for funding is both prudent and necessary. This process began in 2012, and the Company continues to review ways in which it can lay off costs or reduce them, while maintaining its activities and undertaking effective exploration. This equity issuance is a key development in this programme, and directors are showing their confidence in the future of the Company in 2013 by participating substantially in the funding."
Following the issuance of the 91,039,508 new Shares, being Shares under the Issue and the Fee, the Company's total issued ordinary share capital will be 941,752,669 ordinary shares of 0.1p.
Application has been made to the London Stock Exchange for the new Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on or around 21 January 2013.
Following the Issue and the purchase by the Directors, the Directors' direct and indirect shareholdings in the Company will be as follows:
Ordinary Shares in the Company | ||||
Direct | Indirect* | Total | As % of issued share capital | |
Andrew R M Bell | 35,795,518 | 486,168 | 36,281,686 | 3.85% |
Edmund Sr Bugnosen | 200,000 | 486,168 | 686,168 | 0.07% |
Scott C Kaintz | 421,053 | 486,168 | 907,221 | 0.10% |
Julian M E Lee | - | 6,094,025 | 6,094,025 | 0.65% |
John Watkins | 4,150,000 | 486,168 | 4,636,168 | 0.50% |
* Each director indirectly holds 486,168 shares held by the Share Incentive Plan Trustees. In addition, Julian M E Lee holds 5,607,857 shares through HSBC Global Custody Nominee (UK) Limited.
Enquiries:
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