10 Sep 2009 10:01
Regency Mines PLC
("Regency", "Regency Mines" or the "Company")
Standby Equity Distribution Agreement
10 September 2009
Regency Mines the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea announces that on 9 September 2009 it entered into Standby Equity Distribution Agreement ("SEDA") for up to £3 million with YA Global Master SPV, LTD. ("YA Global"), which is advised by Yorkville Advisors LLC, an investment group headquartered in New Jersey and active across North America, Europe and the Asia Pacific region.
Under the SEDA, YA Global has agreed to subscribe in tranches for up to a maximum of £3 million of the Company's ordinary shares of 0.1 pence each ("Ordinary Shares") over a period of up to 24 months from first use of the SEDA by the Company (or if earlier, 32 months from the date of the agreement). Subscriptions will be priced at a discount to the market price at the time of subscription and will take place at timings and intervals and in sizes determined by the Company, subject to the agreed mechanisms specified under the SEDA such as limitations including marketability which may limit the total amount available under the SEDA.
Andrew Bell, Chairman of Regency Mines Plc, commented: "Regency's goal in securing the SEDA facility is to have in place a facility that will enable Regency to raise capital efficiently at higher valuations as Regency executes its growth plan and communicates positive results. Having observed the successful use of the SEDA by many AIM companies, we are confident that the SEDA will provide a useful reserve funding instrument for Regency and reduce Regency's overall cost of capital."
Fees in connection with the transaction amount to £50,000, and will be fully satisfied by the issue of 1,900,200 new Ordinary Shares ("Fee Shares") at an effective issue price of 2.63 pence per Fee Share.
Application will be made to the London Stock Exchange for the Fee Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. It is expected that admission will become effective and that trading will commence on 16 September 2009.
Following the issue of the Fee Shares the Company's issued ordinary share capital, as enlarged by the Fee Shares, will be 360,957,530 Ordinary Shares.
There are no new significant shareholders created by the issue of the Fee Shares.
Enquiries:
| 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 | 020 7011 9411 | Lothbury Financial Limited | Public Relations |