3rd Jun 2015 08:43
LONDON (Alliance News) - Regency Mines PLC on Wednesday said it has increased its stake in Australia's Ram Resources by converting its carried interest in the Fraser West nickel project.
Regency will be issued 39 million shares in Ram Resources under the conversion of the its carried interest in the Fraser West project, following a placing run by Ram to raise AUD1.6 million. Regency currently holds 35 million Ram shares or 5.31% of the company.
Following the conversion, Ram will own 96% of the Fraser West project, with Regency retaining a 4% carried interest.
Drilling at Fraser is set to start in June and will comprise 12 holes targeting high-priority electromagnetic conductors.
"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," said Regency Chairman Andrew Bell.
Shares in Regency were down 1.6% to 0.0738 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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