6th Feb 2017 10:20
LONDON (Alliance News) - Regency Mines PLC on Monday said progress has been made at the Rosa metallurgical mine in Alabama in the US and said it has acquired a holding in newly-created Vali Carbon Corp.
Regency said it remains on track for coal sales to restart from the Rosa mine in the first quarter of 2016.
The auger drill for the project is on site and a highwall miner has been sourced and is being delivered to carry out the necessary work. This will allow higher production levels and will increase volumes of mineable coal, Regency said.
Separately, Regency has agreed to invest USD150,000 in Vali Carbon, a newly-created, Delaware-incorporated company which will invest in metallurgical coal projects in the Appalachian coal belt in the eastern US.
Regency will have a 20% stake in Vali, which has been set up as a joint venture with UK Carbon Resolutions Ltd.
"We believe that we are in the right commodity in the right place at the right time," said Regency Chairman Andrew Bell.
"Metallurgical coal had already seen a sharp recovery from what we believe were extreme cyclical lows at the beginning of 2016, and the new US administration has already permitted new pipeline construction and is committed to heavy infrastructure spending. We have identified with our partners a range of opportunities to ramp up production and diversify our sources of saleable coal," he added.
Regency shares were up 1.9% to 0.53 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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