30 Sep 2009 14:47
REGENCY MINES PLC
Memorandum of Understanding - Update
Dated: 30 September 2009
Regency Mines plc ("Regency" or the "Company"), the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea, announced the signing of a Memorandum of Understanding with Direct Nickel Pty Ltd ("DNi") on 19 August 2009 (the "MOU") in relation to the Company's interest in the Mambare nickel-cobalt project in Papua New Guinea ("Mambare"). Under the terms of the MOU, the parties agreed to grant each other a period of exclusivity up to October 1, 2009.
Since the signing of the MOU, DNi has carried out a due diligence visit to Mambare, and teams from the two companies have been working closely together to assess new drill data, add and digitize other data, look at possible outcomes, and formulate exploration strategies.
This work is regarded as having been productive by both parties, and the exclusivity period has been extended indefinitely subject to one month's notice of termination on either side.
The parties entered into the MOU because they recognized the significant potential of both the Mambare project and of the DNi Process, and that putting the two together could maximize the value of each. The size and grade potential of Mambare on the one hand, and the technological leadership of DNi on the other, have become more evident to the parties over the last weeks and it is their intention to continue to work together on the next stages of development. Further announcements will be made in due course.
For further information contact:
| Andrew Bell | 0207 402 4580 or 07766 474849 | Regency Mines plc | Chairman |
| Peter Trevelyan-Clark/Ben Jeynes | 020 7489 4500
| Blomfield Corporate Finance Ltd | Nominated Adviser |
| Nick Emerson | 01483 413500 | Simple Investments Ltd | Broker |
| Ron Marshman /John Greenhalgh | 0207 011 9411 | Lothbury Financial Limited | Public Relations |