REGENCY MINES PLC
('Regency' or the 'Company')
Board Change; Restructuring
1 October 2015
The Company announces that Julian Lee has resigned from the Board of Regency with immediate effect.
The Company also announces that following a reassessment of its capabilities and needs in a changed marketplace it has made further substantial reductions in staffing and other costs. By February 2016 monthly staffing cost will have reduced from the 1 September 2015 level by over 60%, while total net monthly overheads (including also office and administration, professional services, and listing-related costs) will have reduced by over 50%.
Regency continues to hold interests in Alba Mineral Resources plc (AIM:ALBA) and in Direct Nickel Ltd, and has over the years converted its interests in mineral tenements, whether by flotation or sale, into shareholdings and/or royalties in Ram Resources Ltd (ASX:RMR), Red Rock Resources plc (AIM:RRR), and most recently its Munglinup Graphite interests into a prospective graphite project, Gold Terrace Pty Ltd (as announced on 20 May 2015).
The only interests that could continue to incur holding costs are those in Papua New Guinea, Greenland and Sudan, where no early exploration is planned, any office/camp costs are now under review, and discussions continue with potential farm-in or JV partners in order to reduce or eliminate the holding cost of the Company's interests.
The Chairman of Regency, Andrew Bell, states: 'We are deeply grateful to Julian who has served as a non-executive director, and made himself available whenever required, since the first days of the Company despite the other and increasing calls on his time.
We pay tribute to the loyal and capable staff who through no fault of their own will now leave us.
Regency has over the last years restructured its balance sheet and converted several of its interests into holdings in outside entities and so eliminated holding costs and management obligations. The remaining directly held interests are also under review in order to reduce costs. We are achieving our aim of a clean and low cost vehicle able to participate in new and cash-generative projects while retaining the value and recovery potential of the assets. Several initiatives are under discussion, and further announcements will be made as matters progress.'
For further information, please contact:
Andrew Bell 0207 747 9960 or 0776 647 4849 ChairmanRegency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMADBeaumont Cornish Limited
Jason Robertson 0129 351 7744 BrokerDowgate Capital Stockbrokers Ltd.
Christian Pickel 0203 128 8208 Media RelationsMHP Communications