Business
Update on Mambare JV; Further Agreements
Update on Mambare JV; Further Agreements.
About this update from Corcel Plc
[{"type":"text","content":"\n \nRNS Number : 4896I Regency Mines PLC 15 June 2011 \n \n\nRegency Mines PLC\n('Regency' or the 'Company')\nUpdate on Mambare Joint Venture; Further Agreements\n \n15 June 2011\n \nRegency Mines, the mining exploration and mineral investment company with interests in nickel and other minerals in Western Australia, Queensland, Papua New Guinea and Pakistan, reports on the Joint Venture between Direct Nickel Pty Ltd. (\"DNi\") and Regency (the \"JV\").\nThe Regency and DNi groups have formalised their Joint Venture by entering into certain new agreements, broadly as envisaged in the Company's announcement of 6 November 2009.\nPurchase and Sale Agreement\nOro Nickel (Vanuatu) Ltd. (\"ONV\"), a wholly owned subsidiary of DNi, and the Company have signed a Purchase and Sale Agreement under which the Company sells its wholly owned Papua New Guinea subsidiary Canopus No 83 Ltd., currently undergoing a change of name to Oro Nickel Ltd. (\"ON\"), and assigns an intercompany loan from RGM to ON amounting to approximately £1.28 million, to ONV. The consideration is the allotment to Regency of such number of fully paid ordinary shares as will on completion represent 50 per cent. of ONV's outstanding share capital .\nThe assets of ONV are a non-exclusive 20 year licence from DNi for lateritic treatment technology capped at 40,000 tonnes per annum (\"tpa\") of nickel in concentrate with options to increase to 90,000 tpa of nickel in concentrate, together with the right to a further licence for any agreed additional project. The maximum prescribed tonnage limit of 90,000 tpa is inclusive of any such additional project licence. The options are exerciseable subject to an approved definitive feasibility study and on successful commissioning of plant by OMV.\nThe principal assets of ON are the licences comprising the Botue-Mambare Nickel Laterite Project (\"BMNLP\") in Oro Province, Papua New Guinea, including the EL 1390 licence.\nFollowing the transaction, ONV will be a company owned 50 per cent. by DNi and 50 per cent. by Regency, the principal assets of which will be the technology licence for lateritic treatment technology and (through ON) the BMNLP.\nUnder the Purchase and Sale Agreement, Regency will be entitled to a Gross Smelter Return royalty of 1 per cent. on sales revenue from the BMNLP.\nShareholder and ...