News: Regency Mines strikes deal for Australian graphite assets

  1. Regency Mines (LON:RGM) is exchanging its graphite tenements in Western Australia for a stake in a potential mine development at a neighbouring property.

    Private Australian group Gold Terrace, which holds the adjacent GAPL tenements, hopes to within a year issue Regency with 3mln shares in the proposed listed vehicle, after Regency surrenders its tenements.

    If it fails to do so, it will pay Regency A$200,000 within 54 weeks of execution.

    The agreement means the neighbouring Halberts property, formerly a mine producing high quality graphite, can go ahead, said Regency.

    Chairman Andrew Bell said: "The conclusion of the GAPL liquidation process allows us to exchange our interests in the area for an interest in a project whose management has a record of successfully bringing mines into production.

    "This is an established quality deposit with a mining history and an existing mining license. There is a good chance that this will grow to be a valuable asset."

     

 
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