Microsoft Word - 160119 Director resignation.docx
19 January 2016 ASX Code: RER
DIRECTOR RESIGNATION
Regal Resources Limited (ASX: RER) ("Regal" or the "Company") announces that Mr Mark Savich has tendered his resignation as a Non-Executive Director and Chairman of the Company effective immediately.
Mr Savich has resigned to allow him to fully focus on his on-going responsibilities as CEO of Agrimin Limited.
The Board sincerely thanks Mr Savich for his commitment and valued contribution to the Company since his appointment in July 2014.
For further information, please contact:
David Young
Managing Director/CEO
Ph: +61 (0)8 9288 4485
Email: [email protected]
Patrick Holywell CFO/Company Secretary Ph: +61 (0)8 9288 4485
About Regal
Regal Resources Limited is an exploration company focused on transitioning in the near-term to a 25,000t per annum copper producer.
The Company's flagship project is the Kalongwe deposit ("the Project") which hosts a near surface oxide JORC resource of 302,000t contained copper and 42,000t contained cobalt, with an average copper grade of 2.71% Cu. The Project is located in the Katanga Province of the DRC and is situated towards the western end of the World Class, Central African Copperbelt.
A Scoping Study ("the Study") has been completed which was based on the Measured and Indicated resource categories of the deposit (ASX: RER 21 April 2015). The purpose of the Study was to evaluate the viability of developing a stand-alone mining operation at Kalongwe utilising a HMS plant to process high-grade mineralisation during the earlier stages of mine development. The results of the Study have highlighted the potential to fast track the development of a mine at Kalongwe.
Key Outcomes of the Scoping Study
Project Net Present Value (NPV @ 10% discount rate) Cu price $3/lb *
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$77.9 million
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Project Internal Rate of Return (IRR)
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81%
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Payback
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13 months
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Capital Cost to Initial Production
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$38.9 million
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Operating Costs (per pound ("lb") Cu payable)
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$1.01per lb
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* Base Case is stated on a post-tax basis assuming 100% project at a copper price of $3.00/lb.
All amounts are in US dollars unless otherwise stated.
Ownership of the Project is held by Kalongwe Mining SA ("Kalongwe Mining"), a company currently owned by Regal (30%), the international commodities trading company Traxys (30%) and La Generale Industrielle et Commerciale au Congo SPRL ("GICC") (40%). Exploration and development costs are jointly funded by Regal and Traxys. Regal is the operator of the JV.
Regal is at an advanced stage in negotiations to increase its interest in Kalongwe Mining to 60% and as the operator of the JV is focused on fast tracking the development of a mining operation at Kalongwe.
The Company has also entered into a joint venture with Ivanhoe Mines to earn up to a 98% interest in a package of highly prospective permits covering an area of 350sq km which are largely contiguous with the Kalongwe permit. An aggressive exploration programme is planned to focus on high priority targets identified in the Ivanhoe Mines JV permits that have the potential to support future growth of the Company.