1st Oct 2015 07:41
LONDON (Alliance News) - Regency Mines PLC on Thursday said one of its non-executive directors has left the company and said it has slashed costs across the business to cope within the tough commodities market environment.
Regency said that by February 2016, its monthly staff costs will have fallen by 60% from the levels at the beginning of September, while its total net monthly overheads, including office and administration, professional services and listing-related costs, will be down by more than half.
Due to the changes it has made, Non-Executive Director Julian Lee has stepped down from the company with immediate effect.
Regency said its only remaining holding which could incur costs are those in Papua New Guinea, Greenland and Sudan, where no early exploration work is planned. All office and camp costs are under review, and talks are ongoing with potential farm-in or joint venture partners which will cut or eliminate the cost obligations the company faces from the projects.
"Regency has over the last years restructured its balance sheet and converted several of its interests into holdings in outside entities and so eliminated holding costs and management obligations. The remaining directly held interests are also under review in order to reduce costs," said Andrew Bell, Regency's chairman.
"We are achieving our aim of a clean and low-cost vehicle able to participate in new and cash-generative projects while retaining the value and recovery potential of the assets. Several initiatives are under discussion, and further announcements will be made as matters progress," he added.
Shares in Regency were untraded early Thursday, having last traded at 0.0242 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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