16 Mar 2017 07:00
REGENCY MINES PLC
("Regency" or the "Company")
MOA on New U.S. Coal Project
16 March 2017
Regency Mines Plc announces a Memorandum of Agreement for a coal Joint Venture in Alabama, U.S.A. ("MOA").
The MOA establishes a joint venture, 25% Regency and 75% Mr Stephen Moscicki ("SM"), to conduct due diligence over a metallurgical coal property of approximately 6,500 acres in northeastern Alabama (the "Property") with a view to bringing it into early operation.
SM has signed an agreement with the vendor of the Property and made an initial payment.
The parties will co-operate on a basis of exclusivity while conducting due diligence and finalising detailed terms, and each party will meet its share of costs.
Further announcements will be made as appropriate.
Andrew Bell, Chairman of Regency Mines, comments: "The Property has been represented as containing substantial metallurgical coal deposits in thick seams suitable for contour and highwall mining.
We are sourcing detailed reports, which may include resource and reserve reports, and permitting information.
This larger but slightly earlier stage asset could be a valuable complement to our two existing coal projects and would build out our development pipeline.
Meanwhile our other coal project activities continue on track."
Background
Regency is bringing into production metallurgical coal projects in the Appalachian coal belt in the Eastern United States. The Appalachians have long been one of the world's largest sources of coal, and some areas contain high quality metallurgical coals.
Regency has two existing projects, one already operating and where commercial production is about to begin, and one where production is expected within three months.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.