27 Jul 2015 07:00
Regency Mines Plc
("Regency" or the "Company")
Potential Investment and Update
27 July 2015
Potential Investment Opportunity
Regency, the natural resources investment company with interests in oil and mineral exploration, announces that it is considering a near-term cash generative investment in the United States.
Due diligence has begun in relation to opportunities to acquire non-operating interests in a portfolio of oil and gas projects with proven flow-tested production. The opportunities include assets in the states of Texas and Louisiana in the United States, and consist of conservative plays with a focus on the last 30% of primary recovery in addition to well interventions, mechanical improvements, and secondary and tertiary recovery programs. It is the Directors' intention that no proposed investment will be of such a size that it will constitute a "Reverse Takeover" under the AIM Rules.
An American geological consulting firm with expertise in the region is being contracted to perform the due diligence on the assets with an initial report expected to be completed in the next month. If due diligence shows the opportunities to be of merit the Directors anticipate completing an investment by September. The Company, however, emphasizes that discussions remain subject to contract and successful completion of due diligence.
RAM Resources Update
Ram Resources ("RAM") is an ASX listed company in which Regency holds or is entitled to be issued 79,000,000 shares (approximately 7.1% of enlarged share capital) currently valued at AUD 316k. RAM has announced a 1,500m drill campaign has started at the Fraser Range South nickel-copper project in Western Australia. Regency has retained a 4% stake, and a royalty, in the Fraser Range Project itself.
The reverse circulation programme of 8-12 holes is designed to test ground electro-magnetic conductors and an extensive soil anomaly located at the southern end of the previously identified Fraser Range gravity high at depths between 100m-250m.
The two highest priority targets are bed rock conductors to be tested with 2-4 holes and 800m of drilling at which point downhole EM readings will be taken and analysed. RAM aims to establish a link between the EM conductors and a number of nearby soil anomalies.
In addition to the drill programme RAM plans to execute 20 line km of ground EM across three new soil anomalies during the current quarter in order to develop additional drill targets.
Further information can be found at the following link:
http://t.co/Ff6YvLtJEn
Andrew Bell, Chairman, comments: "With natural resource markets still relatively weak we are giving priority to the acquisition and development of low risk, low cost, cash generating assets with development potential. This cash can then be utilized to cover our vastly reduced overhead obligations as well as to maintain and where appropriate explore our existing portfolio of mineral exploration assets.
We have investigated oil and gas opportunities in the United States both before and after investing in an onshore project at Horse Hill here in the United Kingdom. Our focus has been on identifying cornerstone assets with production in a safe jurisdiction and with good partners; it is in this context that we have taken this opportunity to the next stage. Identifying the right investment would reduce our need to raise equity and change our overall risk profile: both highly desirable objectives in the current market.
Meanwhile RAM has now begun a drill campaign in the Fraser Range to further its understanding of the geology and to determine the relationship between the previously identified soil anomaly and electromagnetic conductors. Given the proximity to Sirius' Crux anomaly any findings of significance should generate substantial investor interest.
We look forward to updating shareholders on these and other developments as they evolve."
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