20 May 2015 07:00
Regency Mines Plc
("Regency" or the "Company")
Munglinup Graphite - Update
20 May 2015
Regency, the natural resources exploration and investment company with interests in oil, and in nickel and other minerals in Australia, Greenland, Papua New Guinea and Sudan, announces a rationalisation of its graphite interests in Australia.
In relation to its tenements at Munglinup, Western Australia (the "Regency Tenements"), and further to the announcements of 21 November 2014 and 27 March 2015, Regency announces that it has reached agreements with the holders of adjacent tenements formerly held by Graphite Australia Pty Ltd (the "GAPL Tenements") and other parties. These agreements will enable development of the neighbouring Halberts property, formerly a mine producing high quality graphite, to proceed.
Under the agreements, Regency Mines Australasia Pty Ltd ("RGMA") will surrender its interest in the Tenements. Gold Terrace Pty Ltd, a private Australian company, and the holder of the GAPL Tenements, will within a year of execution use its best endeavours to issue RGMA with three million shares in the capital of the proposed listed vehicle, with a current value of approximately AUD 200,000, and in the event of failing to do so will pay RGMA the sum of AUD 200,000 within 54 weeks of execution.
The carrying value of the Tenements in the books of the Company is approximately equal to the disposal value. The shares receivable will be retained for capital growth, and should the consideration be satisfied in cash, this will be used for general working capital purposes.
Andrew Bell, Chairman, states: "The conclusion of the GAPL liquidation process allows us to exchange our interests in the area for an interest in a project whose management has a record of successfully bringing mines into production. This is an established quality deposit with a mining history and an existing mining license. There is a good chance that this will grow to be a valuable asset"
For further information, please contact:
Andrew Bell 0207 747 9960 or 0776 647 4849 Chairman 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.
Christian Pickel 0203 128 8208 Media Relations MHP Communications