Regency Mines PLC Conditional Sale of Remaining Horse Hill Interest (0016U)
October 18 2017 - 12:01PM
UK Regulatory
TIDMRGM
RNS Number : 0016U
Regency Mines PLC
18 October 2017
Regency Mines Plc
("Regency" or "the Company")
Conditional Sale of Remaining Interest in Horse Hill Discovery
and Licenses, Weald Basin, UK
18 October 2017
Regency Mines Plc, the natural resource company with interests
in natural gas and mineral exploration and development, announces,
further to its announcements of 10 July 2017 and 24 August 2017,
that it has conditionally agreed to sell its remaining 3.1%
interest ("Sale Interest") in Horse Hill Developments Ltd ("HHDL")
to Alba Mineral Resources plc ("Alba").
Highlights:
-- Sale of 3.1% of HHDL for GBP630,000
-- Minimum cash consideration component of 50% (GBP315,000)
-- Subject to satisfaction of certain conditions precedent
including in relation to right of first refusal held by UK Oil and
Gas Investments plc ("UKOG") Balance of consideration payable in
new Alba shares to be issued at Completion at volume-weighted
average price in 15 days prior to Completion
-- Alba may elect to settle more than 50% of consideration in cash at its discretion
Transaction Summary
For a total consideration of GBP630,000, the Company has agreed
to sell 31 ordinary shares in HHDL, comprising a 3.1% shareholding.
This consideration shall be paid in a combination of cash and fully
paid ordinary shares in Alba, with the proportion of cash and
shares to be determined by Alba subject to a minimum cash component
of GBP315,000. Any proportion of the purchase price to be settled
in shares shall be settled on the basis of a deemed share price for
Alba ordinary shares equal to the volume weighted average price of
Alba ordinary shares in the 15 trading days prior to Completion.
Any proposed disposal by Regency of Alba consideration shares shall
be subject to a six month orderly marketing provision
post-Completion.
Completion of the acquisition is subject to the satisfaction, or
waiver by Alba, of certain conditions precedent including relating
to confirmatory due diligence to Alba's satisfaction in respect of
the Sale Interest and receipt of all necessary third party or
regulatory consents, approvals and waivers. UKOG have a first right
of refusal which they must exercise within 25 business days of
being notified of the proposed sale.
The 31 shares in HHDL were acquired for GBP248,000 in February
2017 and are carried in Regency's books at GBP464,688 as at the
last audited balance sheet date, 30th June 2016.
Andrew Bell, Chairman, comments: "With this sale we complete the
disposal of our 5% interest in Horse Hill Developments Ltd, that we
acquired for GBP400,000 in February 2016. We were fortunate in our
timing of the first sale of 1.9%, netting GBP1,297,700 from
disposal of the UKOG shares issued as part of the consideration,
and we have now agreed to sell the 3.1% balance for GBP630,000,
largely in cash. Our expected realisation from the disposal of our
HHDL interest is therefore GBP1,927,700. We expect to deploy the
proceeds of this new sale in deleveraging the business, furthering
our interests in metallurgical coal and to provide working capital
for the development of other opportunities."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines
Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Neil Badger 0129 351 7744 Broker Dowgate Capital Stockbrokers
Ltd.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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