18th Nov 2005 10:40
Regency Mines PLC18 November 2005 Regency Mines plc Preliminary Results for the year ended 30 June 2005 Dated: 18 November 2005 CHAIRMAN'S STATEMENT The financial period to 30 June 2005, the first of Regency's existence, was oneof rapid development. On 22 February the Company achieved an important milestone, listing on the AIMMarket of the London Stock Exchange. Immediately prior to Admission Regencyraised £500,000 before expenses by way of an offer for subscription of25,000,000 new shares at 2p to fund the listing, exploration, and workingcapital. The Offer for Subscription and the Admission Document can bedownloaded from the Company's website at www.regency-mines.com. CORPORATE FINANCE AND INVESTMENT In the Admission Document the Company stated that over and above the explorationand development of the properties it would acquire on Admission it would pursuean active strategy of investment in the mining and mineral sector to enhance thevalue of Regency's assets. On the 3 May 2005 the Company subscribed for 4,200,000 founder shares in ThorMining plc ("Thor") at par and on 6 June 2005 the Company subscribed for afurther 4,000,000 seed shares in Thor at a price of 1 pence per share. On 14November 2005 the shares had risen to 3.375 pence, giving the Company anunrealised book profit on the investment of over £230,000. Thor'sbusiness is the development of the Molyhil tungsten/molybdenum deposit in theNorthern Territory of Australia, and exploration of nearby areas and is tradedon AIM. On 29 July 2005 the Company's subsidiary Red Rock Resources plc ("Red Rock") wasadmitted to AIM, and placed 27.3 million shares at 2p a share. Following asubsequent share issue by Red Rock, Regency now owns approximately 62% of RedRock, making it the company's largest shareholder. On 14 November the price ofRed Rock was 2.625 pence per share, valuing the Company's investment at£2,650,000. The assets acquired by Red Rock, which consist of iron ore,manganese, and uranium tenements in Western Australia, the Northern Territory,and Tasmania, were acquired by Regency following its admission to AIM, and atthe current Red Rock share price the investment in Red Rock represents aconsiderable unrealised book profit to Regency. On 14 October Red Rock obtaineda secondary listing on the Frankfurt Stock Exchange. EXPLORATION The Company's efforts to begin early exploration at its Lake Johnston nickelprojects were thwarted by unusually heavy rains that caused vehicles to becomebogged down. At the Bundarra copper-gold project in Queensland there was more success. Aprogramme of soil sampling and geological mapping has been completed over threeprospects within the Bundarra project area; Isens, Flora Range and Mt Flora. At Isens, soil sampling was completed on 200m x 80m centres in open terrain.Results were significant; peaking at 3.1% copper with 0.9g/t gold and 10.8g/tsilver. Other results included 0.5% copper with 0.36g/t gold and 2.5g/t silver.Copper and gold anomalism has been outlined over approximately 1500m of strikeand remains open to the west. At surface, mineralisation is up to 30m wide andhosted by a brecciated, iron-stained quartz-feldspar porphyry. Primarysulphides are chalcopyrite and pyrite, with secondary copper carbonates ofmalachite and azurite. Three traverses of angled Reverse Circulation drillingis required to test mineralisation at depth. At Flora Range, soil sampling was completed over 4km of strike on 200m x 80mcentres. Copper and gold anomalism was outlined over the entire 4km of strikeand remains open to the southwest. Maximum results were 2400ppm copper with28ppb gold and 2.7g/t silver. Mineralisation is hosted by discontinuous lodesof brecciated granite intruded by veins of iron and malachite stainedquartz-feldspar porphyry. Ten sets of historic workings were located within theFlora Range area, each commonly returning +2% copper from historic rock chipsampling by previous explorers. Only one working has been tested by a single RChole that, significantly, returned 3m @ 7.2g/t gold from 36m. A groundgeophysical survey (IP) and RC drilling is required to test the peak geochemicalresponse. At Mt Flora, the immediate area of historic workings has been subject to muchsurface exploration in the past and, consequently, soil sampling and mapping wasfocused on potential northern and southern strike extensions to mineralisation.Sampling returned a peak of 254ppm copper and 7ppb gold. Results confirmedmineralisation continues northwest of the historic workings for some 2500m, andalso southeast for a further 1800m. However, mineralisation is of a more subtlenature than that encountered at Isens and Flora Range. This suggests a large,low-grade disseminated style of mineralisation for Mt Flora. Step out RC orDiamond drilling of the Mt Flora mineralisation is required. During August, magnetic and radiometric data from a detailed airborne surveywere processed and imaged. Total count (K, Th, U) radiometric data illustratesthe strong alteration of the Permian sedimentary rocks in contact with themargin of the Bundarra intrusion, and highlights the potential for economicaccumulations of uranium. Subsequent imaging of the airborne uranium datarevealed several discrete anomalies within the project area. These arescheduled for ground follow-up during the current field season. The directors consider the results to date of the sampling and mapping programmeat Bundarra to be encouraging and to justify moving to the next stage ofexploration. The results in the Isens area mean that this will be a focus offurther exploration effort, including drilling. The Flora Range results willalso be followed up by further exploration, including drilling. Continuedmapping and sampling of areas around the edge of the Bundarra intrusion will beundertaken to test hitherto unexplored areas. The objective remains to identifyand delineate high grade copper zones as well as potential low grade bulktonnage targets. Several areas have uranium anomalies identified from theradiometrics and will be tested by field work. OUTLOOK The directors anticipate that 2005-2006 will be another year of growth anddevelopment, expect to undertake further acquisitions, and will considerfarm-ins and joint ventures on certain of its properties. The directors believe the company's investments in Thor Mining plc and Red RockResources plc will continue to develop in the future. In the Lake Johnston area exploration will be undertaken. At Bundarra, the programme of work, including drilling, identified as necessaryto follow up recent geochemistry and mapping, will be carried out. Theencouraging results to date give reason for optimism. CONCLUSION In the short period since Admission Regency has advanced towards its objectivesand has increased its range of assets, some commanding independent values in thestock exchange. Wider recognition of its achievements and ambitions has beenslow to catch up with the pace of these developments. I thank, on your behalf, our nominated adviser, solicitors, accountants, andgeological advisers for their hard work and support during the period underreview. Finally, on behalf of the Board, I thank shareholders for the trust andconfidence they have placed in us. Andrew R. M. Bell Chairman 16 November 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 30 JUNE 2005 Period 10 September 2004 to 30 June 2005 £ Turnover -Cost of sales -Gross profit -Administrative expenses 108,070Loss on ordinary activities before taxation (108,070)Taxation -Loss on ordinary activities after taxation (108,070)Minority interests 2,433Retained loss for the period attributable to (105,637)Shareholders of the Company Loss per share - basic (0.13) pence Loss per share - fully diluted (0.13) pence There are no recognised gains or losses other than the loss for the period. All the operations are considered to be continuing. The accompanying accounting policies and notes form an integral part of thesefinancial statements. CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2005 30 June 2005 £Fixed assets Intangible assets 963,348 Current assets Debtors 28,279 Investments 44,200 Cash at bank 154,334 226,813Creditors - amounts due within one year (144,244)Net current assets 82,569Total assets less current liabilities 1,045,917 Share capital and reserves Called-up share capital 125,110 Share premium account 991,921Profit and loss account (105,637) Other reserves 12,457Equity shareholders' funds 1,023,851 Minority Interests 22,066 1,045,917 COMPANY BALANCE SHEET AS AT 30 JUNE 2005 30 June 2005 £Fixed assets Intangible fixed assets 579,293 Investments 249,500 828,793Current assets Debtors 120,432 Investments 44,200 Cash at bank 96,418 261,050Creditors - amounts due within one year (26,714)Net current assets 234,336Total assets less current liabilities 1,063,129 Share capital and reserves Called-up share capital 125,110 Share premium account 991,921Profit and loss account (53,902) Equity shareholders' funds 1,063,129 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2005 Year ended 30 June 2005 £ Net cash outflow from operating activities (38,975)Capital expenditure and investment (909,844) Cash outflow before financing (948,819)Financing 1,103,153Increase in cash in the year 154,334 NOTES The financial information set out above does not constitute statutory accountsas defined in section 240 of the Companies Act 1985. The Directors are not recommending the payment of an ordinary share dividend. The basic loss per share is derived from the ordinary activities after taxationof £105,637 divided by 78,013,246 ordinary shares, being the weighted average inissue during the period. The diluted loss per share is calculated using aweighted average number of ordinary shares in issue inclusive of outstandingoptions of 81,413,246. The balance sheet at 30 June 2005, the profit and loss account, and the cashflow statement for the period then ended have been extracted from the Group'sstatutory financial statements upon which the auditors' opinion is unqualifiedand does not include any statement under Section 237 of the Companies Act 1985. Copies of the report and financial statements will be posted to Shareholders on24 November 2005 and be available for one month from the Company Secretary atthe registered office from Thursday 24 November 2005. Alternatively, the report may be downloaded from the Company's website,www.regency-mines.com ANNUAL GENERAL MEETING The Annual General Meeting of the Company will be held at the offices ofRonaldsons, 3rd Floor, 55 Gower Street, London WC1E 6HQ England, on Wednesday 21December 2005 at 11.30 a.m. ENQUIRIES: Andrew Bell 07766 474849 Red Rock Resources plc Chairman John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Ron Marshman / John 020 7628 5518 City of London PR Limited Public RelationsGreenhalgh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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