Regency Mines PLC Partial sale of Horse Hill Discovery interest (5163K)
10 July 2017 - 4:00PM
UK Regulatory
TIDMRGM
RNS Number : 5163K
Regency Mines PLC
10 July 2017
Regency Mines Plc
Partial Sale of Interest in Horse Hill Discovery
10 July 2017
Regency Mines Plc ("Regency" or the "Company"), the natural
resource company with interests in oil and mineral exploration,
announces that the Company has agreed to sell 19 of the 50 shares
in Horse Hill Development Limited ("HHDL") announced on 22 February
2016 and 23 February 2016.
Highlights:
-- Sale of 1.9% of HHDL for GBP323,000
-- Regency reinvests GBP268,502 in UKOG shares at 1.55p a share or lower
-- Regency retains 3.1% of HHDL
-- If Regency sells remaining 3.1%, UKOG has right of first refusal for 18 months
Andrew Bell, Regency Chairman, states: "With this transaction we
retain a direct interest in the promising Horse Hill assets, but
also gain exposure to Horse Hill and other key Weald Basin assets
through a holding in UKOG.
We set a new benchmark price on our holding, and increase the
liquidity of our assets and realise a holding gain.
We look forward to participating in the active exploration of
the Weald Basin, which we expect to continue as the potential of
this new hydrocarbon province is increasingly recognised."
Details
Under the agreement signed on 7 July 2017 the Company has agreed
to sell to UK Oil and Gas Investments PLC (AIM:UKOG)("UKOG") a 1.9%
interest out of the 5% interest it holds in HHDL for a purchase
price of GBP323,000 ("Consideration").
HHDL is a special purpose company that owns a 65% participating
interest in and has the operatorship of license PEDL 137 and the
adjacent license PEDL 246 in the UK Weald Basin. The Horse Hill-1
well, where a discovery was announced on 24 October 2014, is
located within onshore exploration license PEDL 137, on the
northern side of the Weald Basin near Gatwick Airport.
The Consideration will be settled by (a) a cash payment of
GBP54,498 to be applied to Regency's proportionate share of HHDL
cash call 8, and (b) a cash payment of GBP323,000 to be applied to
the subscription of new UKOG shares at the lower of (i) the 30 day
volume weighted average price ("Relevant Price") as at the date of
completion of the sale and (ii) the Relevant Price as at 28 June
2017.
The Relevant Price as at 28 June 2017 was 1.55 pence and the
closing price of UKOG shares as at 7 July 2017 was 2.85 pence.
The 19 shares in HHDL were acquired for GBP152,000 in February
2017 and are carried in Regency's books at GBP284,809 as at the
last audited balance sheet date, 30(th) June 2016.
Regency has granted UKOG a right of first refusal for 18 months
over the 31 shares in HHDL not sold in this transaction.
The transaction is conditional on all relevant approvals being
received.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 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
Jason Robertson 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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