29 Nov 2010 12:08
Regency Mines PLC
29 November 2010
Loan Agreement
Mambare and Direct Nickel
Movement to SETS
Regency Mines plc ("Regency" or the "Company") announces that it has entered into a loan agreement with YA Global Master SPV Limited ('YA Global'), which is advised by Yorkville Advisors LLC.
Under the agreement Regency has borrowed $2,000,000 from YA Global. The loan carries interest at 12% p.a. and is repayable in eight instalments with the last instalment due on 26 November 2011. The loan is secured under a Standby Equity Distribution Agreement ('SEDA') between Red Rock and YA Global entered into on 9 September 2009 and by security over certain liquid assets of Regency, including 30,000,000 ordinary shares in Regency's associate company, Red Rock Resources plc.
The loan will be used to finance Regency's investment in Oracle Coalfields announced on 12 November 2010.
Further to its announcement of 19 November, the Company now expects to make a further and fuller announcement on Mambare and its investment in Direct Nickel Pty Ltd later today.
The Company is also pleased to announce that with effect from today its ordinary shares are now traded on SETS (the Stock Exchange Trading System), the London Stock Exchange's Flagship electronic order book.
For further information contact:
Regency Mines PLC Andrew Bell, Chairman 0207 402 4580
Sandra Spencer, Public and
Investor Relations 0207 402 4580
Nominated Adviser
Religare Capital Markets Peter Trevelyan-Clark/Ben Jeynes 020 7444 0800
Broker
Simple Investments Ltd Nick Emerson 01483 413500
Updates on the Company's activities are regularly posted on its website www.regency-mines.com.