6th Dec 2018 16:19
LONDON (Alliance News) - Regency Mines PLC on Thursday said it intends to surrender its niobium-tantalum licence in Greenland at the end of 2018 and has secured an option for a 50% interest in a North American project.
Regency has secured a 45-day option for the North American vanadium exploration project, which has a GBP25,000 option fee payable through the issue of 5 million Regency shares at a price of 0.50 pence per share.
The share price represents 43% premium to the mid-market share price at the time the transaction was agreed. Shares in Regency were trading flat at 0.35p on the day Thursday.
Regency has applied to AIM for the 5 million shares, which are expected to be admitted to trading on or around next Wednesday. Once these have been issued, Regency's enlarged share total will be 796.2 million.
The exact location of the project and name of the current vanadium project owner have not been disclosed.
"As we exit Greenland having concluded that the niobium-tantalum project there was non-core, we are pleased to have secured this option for Regency Mines which if exercised gives the company exposure to a vanadium exploration opportunity in North America," said Regency Mines Chairman Andrew Bell.
Regency holds 50% of the Mambare nickel/cobalt project in Papua New Guinea.
"The vanadium project would provide a high potential impact exploration opportunity. At our 50% owned Mambare project we have a significant JORC compliant nickel/cobalt deposit. And we have a revenue generating coal production asset through our 47% interest in Mining Equity Trust LLC," Bell added.
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