Deal RGM

Regency Mines Plc (“Regency” of “the Company”) is a natural resource and battery metals enterprise with interests in mineral exploration and batteries and energy storage technologies.

Regency is raising a minimum of £100,000, before costs, at 0.55p per share. For each new share subscribed for Regency will also issue one (1) new warrant to subscribers, with an exercise price of 1p per share, exercisable for two years. The warrants have an accelerator for conversion in that the company can compel conversion of the warrants within the exercise period in the event that the volume weighted average price of Shares equals or exceeds 3.5p for ten consecutive business days. This deal will be open between 8am on Wednesday 24 January 2018 and 8am on Monday 29 January 2018, unless closed earlier.

Trading will commence on the settlement date of Wednesday 07 February 2018 (“Admission”). Contract notes will be issued on completion of the deal, on Admission.

Note that any applications may be subject to scale back. If this occurs it will be applied pro rata on the basis of application size.

About Regency & use of funds

  • Regency is to rebrand its nickel/cobalt and related assets as a battery metals function in recognition of the Company’s position in these mineral resources to be used in EV batteries and related energy technologies;
  • Operations at Mambare, the Company’s major nickel/cobalt project, to be accelerated;
  • Advanced due diligence and discussions underway to expand the Company’s coal footprint within its hydrocarbon energy function;
  • Strategic financing undertaken at 0.55p on 11 January 2018, which raised £1,050,000 through the issue of 190,909,090 new ordinary shares of 0.01 pence each (“Shares”); Each Share issued in that financing came with a warrant to subscribe for a further share at 1.0p, with the Company able to accelerate warrant conversion in the event that the volume weighted average price of Shares equals or exceeds 3.5p for ten consecutive business days;
  • Uses of funds to include repayment in full of convertible loan at cost of c£630,000 leaving Regency balance sheet free of debt
  • Directors Andrew Bell and Scott Kaintz invested an aggregate £100,000 cash in the strategic financing to acquire 18,181,818 Shares.

Please refer to the Company’s announcement on 11 January 2018 for the latest Business Update – https://www.investegate.co.uk/regency-mines/rns/business-update-and-strategic-financing/201801110700035517B/

Key risks Description Market and Funding Risks

  • Continued Access to Equity and Debt Capital to Maintain Solvency and to Fund Operations
  • Excessive Cost of Available Capital – Interest Rate Fluctuations – Discounted Equity Offerings
  • Currency Volatility in the UK and in Currencies in Which the Company Operates
  • Deterioration in Commodity Prices
  • Company Share Price Volatility
  • Commodity Investor Risk Appetites
  • Low World GDP Growth– Perceived Demand for Commodities May Decline
  • Natural Resource Market Sentiment
  • Perceived Oversupply of Certain Commodities Geological Risks
  • Base Probability of Exploration and Development Success
  • Time and Monetary Costs of Drilling Unsuccessful Prospects
  • Low Rate of Deposits and Reserves Developed from Targets
  • Geological Setting Variations and Data Uncertainties
  • Style of Mineralisation and Variability of Geological Targets
  • Grade/Tonnage Issues – Failure to Achieve Economic Deposits or Reserves During Development
  • Uncertainty Over Recoverability of Reserves Operational Risks
  • Operational and Development Cost Variability and Uncertainty
  • Natural Resource Policy and Regulatory Changes Impact Operations
  • Social License to Operate – Permitting and Approvals May be Denied and/or Delayed
  • Resource Nationalism – Threatens Project Ownership During Development
  • Infrastructure Access – Poor Infrastructure May Require Government Upgrades and Investment
  • Staffing and Expertise – Key Geological and Operation Staff May be Difficult to Recruit and Retain
  • Breakdowns of Key Plant and Equipment – Mechanical and Technical Problems
  • Extreme Weather Conditions at Operational Sites May Delay or Increase the Cost of Operations
  • Exposure to and Reliance on the Performance of Operating and Joint Venture Partners

If you are buying outside of market size this may prevent you from selling the shares at market price.

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