Business
Joint Venture Agreement
Joint Venture Agreement.
About this update from Corcel Plc
[{"type":"text","content":"\n RNS Number : 1089C Regency Mines PLC 06 November 2009 \n \nREGENCY MINES PLC\n \nJoint Venture Agreement\n\nDated: 6 November 2009\n\n \nRegency Mines plc (\"Regency\" or the \"Company\"), the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea, announces the signing of a Joint Venture Agreement with Direct Nickel Pty Ltd (\"DNi\"), pursuant to the Memorandum of Understanding beteeen the parties signed on 19 August 2009 and extended on 30 September 2009 (\"JV\").\nUnder the terms of the JV, the parties have agreed to co-operate on a 50/50 basis in the piloting and application of DNi's advanced nickel/cobalt leaching technology at Regency's Mambare lateritic nickel deposit in Papua New Guinea. Regency will agree to sell a 100% interest in its wholly owned subsidiary Canopus No 83 Limited, and in any other interests it may come to hold in the vicinity of the Mambare deposit, to a wholly owned subsidiary of DNi (\"JVCo\"), for a consideration consisting of redeemable convertible shares which will convert, on achievement of the objective of the JV, into a 50% interest in JVCo. The objective of the JV is to achieve directly or indirectly a listing of JVCo on a stock market to fund ongoing resource delineation and the piloting of the DNi Process. Should this not be achieved, either party will have the right (but not the obligation) to terminate the JV and the Company's redeemable convertible shares would then be convertible into a 100% interest in Canopus No 83 Limited. Achievement of the objective of the JV may be conditional on Regency shareholder approval in accordance with Rule 15 of the AIM Rules for Companies.\nJVCo will hold a license for production of up to 60,000 tpa nickel in concentrate using the DNi technology, and the right to a second license for an approved second project of up to 30,000 tpa of nickel in concentrate.\nRegency will enter into a sale and purchase agreement in agreed form with JVCo, completion of which will be subject to compliance with any legal or regulatory requirements in the United Kingdom or Papua New Guinea; and subsequently will agree with DNi ...