Business
Joint Venture with Legacy Hill Resources
Joint Venture with Legacy Hill Resources.
About this update from Corcel Plc
[{"type":"text","content":"\n \nRNS Number : 1152G Regency Mines PLC 27 February 2018 \n\nRegency Mines Plc\n \n(\"Regency\" or \"the Company\")\n \nJoint Venture with Legacy Hill Resources\n \n27 February 2018\n \nFurther to the announcement of 6 December 2017, Regency Mines Plc, the natural resource exploration and development company with interests in hydrocarbons and base metals, announces that it has now executed a Joint Venture Agreement with Legacy Hill Resources Ltd (\"LHR\"), a privately owned mining company, setting out the framework for co-operation.\nThe purpose of the Joint Venture (\"JV\") is the structuring and financing of acquisitions in the U.S. metallurgical coal sector, and their subsequent management and operation. \nPrincipal Terms of the Joint Venture\n· LHR will own 30% of the JV which reflects it role in financing, Investing and managing the acquisition to date.\n· LHR will contribute to JV a further $1m cash\n· Regency will contribute to JV up to $2m cash\n· Equity contributions to JV under this Agreement capped at $3m cash\n· Regency to hold proportion of 70% of JV equal to its proportion of cash contributions\n· If more than $3m at any stage required as cash contribution, a new agreement to be entered into dealing with that additional amount\n· LHR will be responsible for day to day to day operations\n· Detailed terms and operational matters to be formalised in full agreement\nBackground of Legacy Hill Resources \nLegacy Hill Resources is a mining company founded by D. Saradhi Rajan. It has a multi disciplinary team focussed on technical and operating expertise and uses a low risk, cashflow focussed approach to build assets with strong growth prospects.\nSaradhi Rajan, Legacy Hill Managing Director, comments: \"Metallurgical coal has an important and irreplaceable role in the manufacture of steel. The USA has an important role to play in meeting global demand for high quality premium metallurgical coal. Together with Regency Mines we will be building a portfolio of low cost operations all with excellent access to infrastructure.\"\n \nAndrew Bell, Regency Chairman, comments: \"We have been working with our co...