RGM.L Regulatory News (RGM)

5 Mar 2009 11:31

REGENCY MINES PLC

Issue of Equity

Dated: 5 March 2009

Regency Mines plc ("Regency" the "Company") the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea, has issued 73,400,000 new ordinary shares of 0.1p each in the capital of the Company (the "Shares") at 0.5p per Share, to raise £367,000 before expenses, conditional on the Shares being admitted to trading on AIM.

Equity Resources plc, a PLUS quoted company of which John Watkins is a director, has agreed to subscribe for 10,000,000 Shares at 0.5p per Share. Following the subscription, Equity Resources plc will be interested in 10,000,000 ordinary shares, which is approximately 3.13% of the issued share capital of the Company as enlarged by the placing.

Starvest plc, an AIM traded company of which John Watkins is a director, has agreed to subscribe for 7,500,000 Shares at 0.5p per Share. Following the subscription, Starvest plc will be interested in 33,350,000 ordinary shares, amounting to approximately 10.45% of the issued share capital of the Company as enlarged by the placing.

Sunvest Corporation Limited, a company traded on the Australian Stock Exchange, has agreed to subscribe for 3,700,000 Shares at 0.5p per Share. Following the subscription, Sunvest Corporation Limited will be interested in 16,273,332 ordinary shares, amounting to approximately 5.10% of the issued share capital of the Company as enlarged by the placing.

City Equities Limited has agreed to subscribe for 40,000,000 Shares at 0.5p per Share. Following the subscription, City Equities Limited will be interested in 40,000,000 Shares, which is approximately 12.53% of the issued share capital of the Company as enlarged by the placing,

Cornhill Capital Limited has agreed to subscribe for 10,000,000 Shares at 0.5p per Share. Following the subscription, Cornhill Capital Limited will be interested 10,000,000 Shares, which is approximately 3.13% of the issued share capital of the Company as enlarged by the placing,

Mr. Andrew Bell, a director of the Company, will following the placing be beneficially interested in 43,644,284 ordinary shares, amounting to approximately 13.68% of the issued share capital of the Company as enlarged by the placing held through Bellmin Limited and Redstone Metals Pty Limited.

Mr. Ken Watson, a director of the Company, will following the placing be beneficially interested in 22,700,004 ordinary shares, amounting to approximately 7.11% of the issued share capital of the Company as enlarged by the placing held through Redstone Metals Pty Limited and in his own name.

Starvest plc currently holds 10.52 per cent of the Company's issued ordinary share capital and is a related party for the purposes of the AIM Rules for Companies. The independent directors, being those directors other than John Watkins, having consulted with Blomfield Corporate Finance Limited, consider the terms of the placing with Starvest plc to be fair and reasonable insofar as the shareholders of Regency are concerned and in the best interest of the shareholders of Regency as a whole. In providing advice to the Board, Blomfield Corporate Finance Limited has taken into consideration the independent directors' commercial assessment of the placing.

Following the issue of these Shares the Company's total issued share capital will be  319,140,663 ordinary shares of 0.1p each. Application will be made to the London Stock Exchange for the 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 11 March 2009.

Enquiries:

Updates on the Company's activities are regularly posted on its website, www.regency-mines.com.