17 Jun 2011 14:44
REGENCY MINES PLC
Loan Agreement
Dated: 17 June 2011
Regency Mines plc ("Regency Mines" or the "Company"), the mining exploration and mineral investment company with interests in nickel and other minerals in Western Australia, Queensland, Papua New Guinea and Pakistan, announces that it has entered into a loan agreement with YA Global Master SPV Ltd. ('YA Global'), which is advised by Yorkville Advisors LLC (the "Loan Agreement").
Under the terms of the Loan Agreement the Company has agreed to borrow US$3,300,000 from YA Global. The loan carries interest at 6% p.a. and is to be repaid in scheduled installments within 15 months of drawdown. The loan is secured under a Standby Equity Distribution Agreement ('SEDA') between Red Rock and YA Global entered into on 9 September 2009 and amended on 10 June 2011, and by security over 85,000,000 ordinary 0.1p shares in Red Rock Resources plc held by the Company.
The net loan proceeds of US$2,854,862 will be used to meet working capital requirements and to advance the Company's joint venture with Direct Nickel Ltd.
Enquiries:
Andrew Bell | 0207 402 4580 or 07766 474849
| Regency Mines plc | Chairman |
Sandra Spencer | 020 7402 4580 or 07757 660 798
| Regency Mines plc | Public and Investor Relations |
Peter Trevelyan Clark / Ben Jeynes
| 020 7489 4500 | Religare Capital Markets
| Nominated Adviser |
Nick Emerson | 01483 413500 | Simple Investments Ltd
| Broker |
Updates on the Company's activities are regularly posted on its website, www.regency-mines.com.