RGM.L Regulatory News (RGM)

22 Nov 2007 07:02

Regency Mines PLC22 November 2007 REGENCY MINES PLC Trading Update Dated: 22nd November 2007 Regency Mines plc ("the Company") the mining exploration and mineral investmentcompany with interests in copper and nickel in Papua New Guinea, WesternAustralia, and Queensland, announces that it has entered into a 'Memorandum ofInvestment and Co-operation' with an Asia-based investment group which couldlead to a substantial investment in the Company and one of its projects. The agreement is subject to contract, due diligence and receipt of regulatoryapprovals. It is presently envisaged that the due diligence and other proceduralmatters will be completed within three months. The Company emphasises that while it expects the investment to proceed, theMemorandum does not constitute a binding commitment to invest. The Company also advises that following unprecedented damage in Oro Provincecaused by Tropical Cyclone Guba, the Government declared on 20 November a stateof emergency. The provincial capital of Popondetta has been cut off from itsairport and from Oro Bay by flooding washing away roads and bridges, and isshort of potable water and food. Up to 150,000 people in the Province arethought to have been displaced and at least 70 have lost their lives. The road near the Company's project area from Kokoda to Popondetta, and fromPopondetta to the coast, is currently impassable, but the Company maintainscommunication by air with Kokoda. The Company is able to resupply its camp, anddrilling has today recommenced. Over 40 drillholes have been completed, with samples sent for assay in Jakartaevery week or fortnight, and first results are expected shortly. The Company announces that as of 31st December 2006 Simple Investments Ltdbecame brokers to the Company. Enquiries: Andrew Bell 0207 402 4580 Regency Mines Plc Chairman John Simpson 020 7512 0191 Blomfield Corporate Finance Nominated Adviser Ltd Ron Marshman / John 020 7628 5518 City of London PR Limited Public RelationsGreenhalgh This information is provided by RNS The company news service from the London Stock Exchange