14th Jun 2016 10:02
LONDON (Alliance News) - Regency Mines PLC on Tuesday said it has moved closer to rationalising its graphite interests in Australia after the company it struck an agreement with in 2015 said it will issue the company shares in a new entity which will hold the assets.
In May 2015, said it has reached agreements with the holders of adjacent nickel tenements to the company's Munglinup tenements in Western Australia to consolidate the area and develop it together. Regency will surrender its interest in the Munglinup tenements to Gold Terrace Pty Ltd, a private Australian company which owns the neighbouring assets.
The agreement would see Gold Terrace issue Regency 3.0 million shares in a new listed entity which will own the assets. On Tuesday, Regency said this had been confirmed.
The value of the issue to Regency will be AUD120,000, against a carrying value of its Munglinup assets of AUD200,000.
Regency said it will provide further information on the deal in due course.
Regency shares were down 6.7% to 0.35 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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