Update on Investment
RNS Number : 0142P
Regency Mines PLC
03 June 2015
Regency Mines Plc
('Regency' or the 'Company')
Investment in Ram Resources - Update
3 June 2015
Regency, the natural resources exploration and investment company with interests in oil, and in nickel and other minerals in Australia, Greenland, Papua New Guinea and Sudan, announces an update regarding its investment in Ram Resources (ASX:RMR)('RAM').
Highlights:
o RAM to issue Regency 39,000,000 shares at AUD0.005 per share reflecting conversion of 3.9% of its carried interest in the Fraser West Project following RAM placing of up to AUD1.6m
o Following this conversion RAM will own 96% of the Fraser West Project and Regency will retain a 4% carried interest
o Drilling set to commence this month at the Fraser Range South project and to comprise 12 RC holes and 1,500m targeting two high-priority EM conductors
Conversion Details:
Following the announcement of 1 May 2015 made by RAM to raise up to AUD645k via a Placing ('the Placing') to sophisticated and professional investors the Company has notified RAM of its intention to convert 3.9% of its remaining stake in the Fraser Range Project on the same terms as the placees under its existing agreement with RAM as announced on 1 July 2013.
This will equate to the Company receiving 39,000,000 shares at a deemed conversion price of AUD0.005 per share as well as 19,500,00 listed options exercisable at a price of AUD2.5c. The current shareholding of Regency in RAM is 35,000,000 or 5.31% and following the conversion Regency's shareholding in RAM will be 74,00,000 shares.
In addition to the Placing RAM has resolved to offer eligible shareholders the opportunity to participate in a Securities Purchase Plan to raise a further AUD1m for a total funding amount of AUD1.6m.
Background:
This background summarises previous RAM announcements, and is provided for convenience. RAM currently holds four projects covering more than 850km2of ground in Western Australia's highly prospective Fraser Range. Systematic early stage exploration by RAM across three of the projects has yielded four drill ready targets, with several other high priority anomalies planned to undergo further work. Work carried out to date has included primarily soil sampling, aircore drilling and VTEM and MLEM surveying.
Drilling is expected to commence in June on the Fraser Range South Project, with drilling at Fraser North planned for later in the year.
Fraser Range South Project
Covering 410km2in the southern Fraser Range, the project is located immediately adjacent to Sirius Resources Ltd's (ASX:SIR) Crux anomaly. Sirius has described the Crux anomaly as displaying similar characteristics as shown by its massive Nova discovery at the same exploration stage.
RAM has identified two bedrock conductors within Ni-Cu prospective ultramafic units less than 2km from Sirius' Crux anomaly and in close proximity to a 1.5km soil nickel anomaly. The two steeply dipping targets, FRSV_1 and FRSV_3, have been modelled as ~850m long, ranging from ~35m to ~500m depth and ~600m long, ranging from ~120m to ~400m depth respectively. With final drill approvals recently granted, RAM expects to commence a 12 hole, 1,500m RC drilling programme to test the targets in June 2015.
Further, RAM has identified three additional soil anomalies in the immediate vicinity. The anomalies will undergo further soil sampling and ground electromagnetic surveying to refine the targets prior to drill testing.
Fraser Range North Project
Comprising 163km2of the northern Fraser Range belt adjacent to ground held by Segue and Ponton Minerals, historic soil sampling and magnetic surveying identified three zones of nickel and copper anomalism in mafic and ultramafic units considered prospective for nickel sulphides. Ground based electromagnetic surveying by RAM identified two bed rock conductor targets which RAM intends to drill test later in 2015.
Other parts of the licenses remain to be tested by ground electromagnetic survey and may yield further conductors and drill targets.
Fraser Range Project
Covering 270km2just 20km west of Sirius Resources' Nova-Bollinger Ni-Cu deposits, work to date has included soil geochemical sampling, aircore drilling, VTEM and MLEM surveying. Aircore drilling intersected sulphide bearing mafic units. Two anomalies have been prioritised for drill testing.
Sheoak Project
In April 2015, RAM secured an option to purchase 70% of the E63/1674 exploration license covering 28km2in the south-west Fraser Range. The project is located 80km north-east of Esperance and 100km south-west of RAM's Fraser Range South Project and contains a layered mafic complex similar in age and style to other prospective Fraser Range ground.
The license is close to and along strike from two targets where Mount Ridley Mining Ltd. (ASX: MRD) recently identified primary nickel and copper sulphides in aircore drilling. The license area has not previously been drilled, but historical soil geochemical data indicates broad zones of elevated nickel. RAM aims to define targets for drill testing by reprocessing existing magnetic data and completing ground based electromagnetic surveying and reconnaissance aircore drilling.
Further information about RAM's Fraser Range projects can be found by following this link:
http://www.asx.com.au/asxpdf/20150312/pdf/42x6wp4n6vsz6m.pdf
Andrew Bell, Chairman, comments: 'As RAM funds its next programme at the Fraser Range project in Western Australia, our decision to convert an additional 3.9% of our direct holding in the project into RAM shares will allow us to participate in the equity upside of the business while retaining an additional direct stake available for future conversion.
We look forward to the results of the upcoming June drilling campaign.'
For further information, please contact:
Andrew Bell 0207 747 9960 or 0776 647 4849 Chairman Regency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.
Christian Pickel 0203 128 8208 Media Relations MHP Communications
This information is provided by RNS
The company news service from the London Stock Exchange
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