RGM.L Regulatory News (RGM)

24 Feb 2005 14:55

Regency Mines PLC24 February 2005 Regency Mines plc (the "Company") Trading Statement Dated: 24 February 2005 On 23 February 2005 the Company entered into a conditional agreement to acquirean iron ore project at Mt Ida, 175km north-west of Kalgoorlie in WesternAustralia. The area covers 175km2 and includes two known large high-gradeoccurrences of Banded Iron Formation ("BIF") similar to that supporting theKoolyanobbing iron operations of Portman Limited. The project area has not been systematically explored for iron ore in the pasthowever nearby Koolyanobbing and Windarling are supplying ore to a profitable,long-life mining operation for Portman. During the 1990s the Geological Survey of Western Australia ("GSWA") completeddetailed mapping of the project area which shows the BIF horizons at eachprospect to cover large areas - Mt. Ida 7km x 3km and Mt. Mason 4km x 2km.Recently released aeromagnetic data shows significant magnetic highs at both theMt. Ida and Mt. Mason prospects. Early prospecting work by the GSWA returnedresults including occurrences of up to 96.98 percent iron oxide. The project provides an opportunity to evaluate a large accumulation of BIF thathas not been subject to any systematic exploration efforts. Consideration for the acquisition on completion will be A$480,000, to besatisfied as to A$100,000 in cash and A$380,000 to be satisfied by the issue ofshares in the Company in accordance with an agreed formula. Regency's chairman, Andrew Bell, said today: "We consider the iron ore businessto have good prospects and, by acting quickly, have been extremely fortunate toacquire a known project on favourable terms with the scope to develop a possiblemajor resource for export. Regional infrastructure is good in the area and cansupport any future mining operation". Enquiries: Andrew Bell 07766 474849 Regency Mines plc Chairman Ron Marshman / John Greenhalgh 020 City of London PR Limited Public Relations 7628 5518 John Simpson 020 ARM Corporate Finance Ltd Nominated Adviser 7512 0191 This information is provided by RNS The company news service from the London Stock Exchange