Australia

Regency Mines acquires Resource Mining Corporation debt at significant discount

Regency Mines PLC has purchased part of the corporate debt of Resource Mining Corporation Pty Ltd (ASX:RMI), 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 ScoRead More – Source