Business
Update on Metallurgical Coal Investment
Update on Metallurgical Coal Investment.
About this update from Corcel Plc
[{"type":"text","content":"\n \nRNS Number : 4097X Regency Mines PLC 24 November 2017 \n\nRegency Mines Plc\n \n(\"Regency\" or \"the Company\")\n \nUpdate on Metallurgical Coal Investment\n \n24 November 2017\n \nFurther to the announcements of 25 November 2016, and 10 January 2017, Regency Mines Plc, the natural resource exploration and development company with interests in hydrocarbons and base metals, announces an update on its involvement in the Rosa metallurgical coal mine and wash plant (the \"Rosa Mine\") located in Alabama, United States of America in the Warrior Coal Basin.\n \nIn consideration of a refundable advance of £34,800 by Regency, US Carbon Resolutions Corporation has given Regency an option to buy the 80% of Carbon Minerals Corporation (\"CMC\"), the owner of the Rosa Mine, not already owned by Regency.\n \nRegency will now have a period of sixty days in which to carry out a comprehensive due diligence on CMC and the Rosa Mine. Should Regency be satisfied with all aspects of this due diligence, and subject to other conditions, Regency would be able to acquire the Rosa Mine, including the wash plant and all other property rights, rights of action, leases, licenses, permits, shareholdings and other rights including the entire ownership of MCoal Corporation, the direct holder of the Rosa Mine, for the sum of £250,000. \n \nRegency notes that the satisfaction of the conditions, including due diligence, is uncertain and that the eventual terms of a transaction acceptable to Regency may not be those set out today. At this moment, the Company has no audited financial information on CMC but understands that there has been minimal turnover from the coal operations and that the Rosa Mine is carried in the books at US$1.65 million with a comparable amount of long-term debt owed to Carbon Trading Specialist LLC. As part of the due diligence exercise, the Company will be ascertaining the financial position of CMC and will announce the relevant figures if and when the further investment proceeds. \n \nAndrew Bell, Chairman, comments: \"Progress at Rosa to date has been unsatisfactory and our hopes for early cashflow from our initial investment have not been met. This additional purchase would allow our partners to continue their focus on other assets and by allowing us to take operational control could ...