Business
Fraser West Project - Update on Disposal
Fraser West Project - Update on Disposal.
About this update from Corcel Plc
[{"type":"text","content":"\n \nRNS Number : 2690I Regency Mines PLC 01 July 2013 \n \n\nREGENCY MINES PLC\n(\"Regency\" or the \"Company\")\nFraser West Project - Update on Disposal\n1 July 2013\nRegency Mines plc, a mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Africa, and Papua New Guinea announces an update on the planned sale of a majority interest in the Fraser West Project in Australia to Ram Resources Limited (ASX:RMR)(\"RAM\"), a company listed on the Australian Stock Exchange.\nThe Fraser West Project, described more fully in the Company's announcement of 21 September 2012, consists of three tenements with an area of 271 sq km in the Fraser Range area of Western Australia (\"Tenements\"). A conditional sale agreement was announced on 26 October 2012, with updates on 30 November 2012 and 1 March 2013, whereby Regency Mines Australasia Pty Ltd (\"RGMA\"), a wholly owned subsidiary of the Company, would sell an 80% ownership interest in the Fraser West Project to RAM, subject to retention of a royalty interest. The first two stages of the transaction (defined as Tranches A and B in the announcement of 26 October 2013) were fulfilled, 155,000,000 shares of RAM being issued to RGMA for a 10% interest in the Tenements, and William Charles Guy was appointed a director of RAM. It was announced that Regency was in discussion with potential investors and other stakeholders in Australia to expedite the remaining parts of the transaction.\nFollowing these discussions, an Agreement for Sale and Purchase of Tenements was entered into between the parties on 30 June 2013, which supersedes all prior contracts and deals with the terms for acquisition of a 70% interest (being the remaining 70% of the interest in the Tenemants as RAM already holds 10%), subject to the royalty, in the Tenements (\"Terms\"). \nUnder the Terms: \n1. RAM will purchase 70% of RGMA's interest in the Tenements for the Share Consideration.\n \n2. The Share Consideration will consist of:\n \na) Such number of RAM shares as will (together with the 155,000,000 RAM shares already held) represent a 19.9% holding in the enlarged issued capital of RAM at completion;\nb) 340,000,000 Class A Performance Shares to be convertible into R...