15th Jul 2016 08:36
LONDON (Alliance News) - Regency Mines PLC on Friday said its partner that failed to supply its share of expenditure for the Mambare project in Papua New Guinea is now under new management which has made a U-turn and decided to stay involved in the nickel and cobalt venture.
Regency and Direct Nickel Ltd are 50:50 partners on the Mambare project, but the London-listed company recently issued default notices and a buy-out notice to Direct Nickel after it failed to supply its share of expenditure on time.
The London-listed miner, as a result, was aiming to buy Direct Nickel out and takeover the entire project, but new management has taken over at Direct Nickel and they have decided to retain its interest.
Direct Nickel has now made a GBP44,032 payment to Regency to reimburse the company for the amounts that were previously owed to the joint venture but were not paid. Regency said a further GBP20,000 should be invoiced "shortly".
Direct Nickel have made it clear it intends to meet the company's share of expenditure for Mambare going forward, Regency said.
"We welcome Direct Nickel's decision to continue our joint venture nickel activities. The recent increase in the nickel price, and political developments in the Philippines, have improved the investment outlook for nickel projects, and we look forward to working with the new Direct Nickel on advancing the Mambare project," said Chairman Andrew Bell.
Regency shares were down 4.3% to 0.335 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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