12th Mar 2015 12:49
LONDON (Alliance News) - Regency Mines PLC and Alba Mineral Resources PLC on Thursday said they have agreed a deal under which Alba will acquire Regency's interest in the Horse Hill prospect in Surrey, southern England.
Alba will pay a total of GBP300,000 in cash to acquire the 5% stake, which will give it a 10% stake in Horse Hill Developments Ltd, the company behind the onshore exploration licence. Horse Hill Developments has a 65% stake in the licence, with the remaining 35% held by Magellan Petroleum Corp.
The deal is dependent on Alba successfully completing a GBP300,000 equity fundraising at no less than 0.25 pence per share.
On Monday, UK Oil & Gas Investments PLC had increased its own interest in Horse Hill Developments to 28% from 20%, paying Angus Energy Ltd GBP580,000 in cash for the additional 8% stake.
Alba shares were up 12% on Thursday to 0.42 pence, one of the best performers in the AIM All-Share. Regency shares were up 5.3% to 0.1 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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