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Grant of Option over Motzfeldt, Issue of Equity
Grant of Option over Motzfeldt, Issue of Equity.
About this update from Corcel Plc
[{"type":"text","content":"\n \nRNS Number : 5739X Regency Mines PLC 22 February 2017 \n\nREGENCY MINES PLC\n(\"Regency\" or the \"Company\")\nGrant of Option over Motzfeldt\nIssue of Equity and TVR\n \n22 February 2017 \n \nRegency Mines plc announces that it has granted a four month option to Value Generation Limited,a private company (the \"Option\" and the \"Optionor\"/\"VGL\") to acquire the Company's 100% interest in license 2014/01 covering the Motzfeldt intrusive complex in southern Greenland (\"Motzfeldt\").As a condition of the Option, VGL has also subscribed £75,000 for new shares in Regency (\"Subscription\").\nSubscription\nAs consideration for the Option, VGL has agreed to purchase 11,538,461 new ordinary shares of 0.01 pence each (\"Shares\") in the Company at a price of 0.65p per share for a gross consideration of £75,000, with 1 for 1 warrants exercisable at a price of 1.3p for eighteen months (\"August 2018 Warrants\" and \"Subscription\"). \nThe purpose of the Subscription is to provide working capital for the development of the Company's coal interests and other working capital purposes.\nThe Subscription is conditional on admission of the Shares to trading on AIM (\"Admission\"). Application has been made to the London Stock Exchange for Admission of the Shares, which will rank pari passu with the Company's existing issued Ordinary Shares. Dealings are expected to commence at 8.00 a.m. on or around 28 February 2017.\nOption \nThe Optionor will utilise the Option period to carry out due diligence on Motzfeldt. The Optionor has the right at any time within the four month Option period to exercise the Option and acquire 100% of Motzfeldt for an exercise consideration of £350,000 payable in cash. In the event the Option is exercised Regency will also be granted a 1.25% Gross Revenue Royalty over any future production from the Motzfeldt license. In the event the Option is exercised and Motzfeldt is sold on within the next eighteen months, then if the sale consideration exceeds £5m Regency will be paid an additional consideration of £500,000 and if the sale consideration exceeds £10,000,000 Regency will be paid an additional consideration of £1,000,000.\nInformation on VGL\nVGL reported unaudited shareholders' funds its unaudited abbreviated balance sheet as at 31 March 2016 of £29,925. Its director and controlling sharehold...