Regency Mines acquires debt for PNG project
Regency Mines PLC has purchased part of the corporate debt of Resource Mining Corporation Pty Ltd, the owner of the WoWo Gap nickel-cobalt project in Papua New Guinea.
Regency has purchased A$1.7mln of debt in RMI for £178,096 cash and 13.3mln shares, representing a 62% discount to the face value of the debt or at full face value an effective issue price of RGM shares of 5p.
Regency has also taken a six-month option to buy the balance of RMI debt at the same proportional terms.
The deal also involves the introduction of the Chinese-owned Sinom Group as a new locked-in cornerstone investor in Regency, with an initial 7.97% equity position.
Regency, in its new role as lender to RMI, plans to initiate constructive discussions with RMI management regarding synergies between its Mambare project and the WoWo Gap nickel-cobalt project in PNG.
To implement the transaction and despite volatile markets, Regency has completed a gross fundraising of £470,000.
"Despite recent market turmoil, Regency is committed to delivering company-shaping initiatives and emerging as a larger and stronger player in the battery metal space,” said Regency chief executive Scott Kainz.
“We are delighted to reveal the first of these, which positions Regency as one of the leading PNG nickel exploration companies with critical mass in country. This debt acquisition provides Regency shareholders with linkage to a highly complementary project in Papua New Guinea and is a first step in creating a business with the scale and diversity to appeal to a wider range of institutional and retail investors.”