26 Feb 2014 13:43
REGENCY MINES PLC
("Regency" or the "Company")
Ram Resources raises AUD 1.5m and announces exploration programme
26 February 2014
Regency Mines Plc ("Regency" or the "Company"), the mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Papua New Guinea and Sudan, reports, further to the announcements on 17 February 2014, that its associate company Ram Resources Ltd (ASX:RMR)("Ram") has today announced the raising, dependent in part on Ram shareholder approval, of AUD 1.5m to fund an extensive exploration programme at its Fraser Range and Fraser Range North Projects.
Highlights
· AUD 1.5m to be raised by a placement at 0.8c of approximately 187.5m new Ram shares with attaching warrants on a 1 for 2 basis exercisable at 2.5c up to February 2017
· 157.5m of these shares to be issued dependent on approval by a Ram shareholders' meeting in late March 2014
· Existing Ram shareholders will be entitled to participate on the same terms in a share purchase plan up to a maximum of AUD 700,000
· Broker to the offer is Hartleys Limited
· 2014 programme will include ground electromagnetic (EM) surveys to prioritise targets at Fraser Range to be followed by RC and diamond drilling
· Exploration of the new Fraser Range North Project to be by way of geochemistry and ground EM surveys followed by air core, RC and diamond drilling
· Regency to exercise its right to participate on equal terms in the placing by converting part of its 20% carried interest in the Fraser Range Project
Regency Chairman Andrew Bell comments: "We have given notice of exercise in respect of 6.5% of our carried interest of 20% in the Fraser Range Project, leaving us with a 13.5% carried interest, and broadly maintaining our current shareholding level. Almost as significant in our eyes as the placing itself is the entry of Hartleys in managing the issue, a sign of confidence both in the Ram management and in the new Fraser Range mineral province. We hope to see a deeper and broader shareholder base at Ram and more research coverage as this highly regarded resources specialist broker engages with and supports the Ram board."
Background on Ram and the Fraser Range Project
Ram (ASX:RMR) is a company in which Regency owns 18.2%, in addition to a royalty over, and a 20% carried interest in, its Fraser Range project, located near the Sirius Resources' Nova deposit in Western Australia.
The full announcement is available to read at:
http://www.asx.com.au/asxpdf/20140226/pdf/42n05d5lj8pk85.pdf
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