Regency Mines PLC Joint Venture with Legacy Hill Resources (1152G)
February 27 2018 - 8:00AM
UK Regulatory
TIDMRGM
RNS Number : 1152G
Regency Mines PLC
27 February 2018
Regency Mines Plc
("Regency" or "the Company")
Joint Venture with Legacy Hill Resources
27 February 2018
Further to the announcement of 6 December 2017, Regency Mines
Plc, the natural resource exploration and development company with
interests in hydrocarbons and base metals, announces that it has
now executed a Joint Venture Agreement with Legacy Hill Resources
Ltd ("LHR"), a privately owned mining company, setting out the
framework for co-operation.
The purpose of the Joint Venture ("JV") is the structuring and
financing of acquisitions in the U.S. metallurgical coal sector,
and their subsequent management and operation.
Principal Terms of the Joint Venture
-- LHR will own 30% of the JV which reflects it role in
financing, Investing and managing the acquisition to date.
-- LHR will contribute to JV a further $1m cash
-- Regency will contribute to JV up to $2m cash
-- Equity contributions to JV under this Agreement capped at $3m cash
-- Regency to hold proportion of 70% of JV equal to its proportion of cash contributions
-- If more than $3m at any stage required as cash contribution,
a new agreement to be entered into dealing with that additional
amount
-- LHR will be responsible for day to day to day operations
-- Detailed terms and operational matters to be formalised in full agreement
Background of Legacy Hill Resources
Legacy Hill Resources is a mining company founded by D. Saradhi
Rajan. It has a multi disciplinary team focussed on technical and
operating expertise and uses a low risk, cashflow focussed approach
to build assets with strong growth prospects.
Saradhi Rajan, Legacy Hill Managing Director, comments:
"Metallurgical coal has an important and irreplaceable role in the
manufacture of steel. The USA has an important role to play in
meeting global demand for high quality premium metallurgical coal.
Together with Regency Mines we will be building a portfolio of low
cost operations all with excellent access to infrastructure."
Andrew Bell, Regency Chairman, comments: "We have been working
with our colleagues at Legacy Hill over the last year with a joint
venture in mind, and we now agree it is appropriate to formalise
the structure. We expect Legacy Hill's cost-effective mine
management to create a sound foundation for a growth strategy in
metallurgical coal."
Update on Rosa Mine
Further to the announcement of 6 December 2017, Regency and LH
have carried out due diligence in relation to the Company's option
to acquire the 80% of the Rosa metallurgical coal mine and
treatment plant not already owned by Regency. The sixty days time
frame for due diligence announced on 24 November 2017 has passed.
Now that the JV with LH is established, Regency is reviewing its
information on Rosa and speaking to stakeholders, but as suggested
in the announcement of 24 November 2017, the eventual terms of a
transaction acceptable to Regency would require negotiation and are
likely to be different from those then set out.
A further announcement will be made in due course.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines
Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 020 7374 2212 Broker First Equity Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
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