Regency Mines (LON:RGM) has completed its investment in Direct Nickel (DNi) and now holds a 7.31% shareholding in the company.
Regency has subscribed for an additional 0.52 million shares in DNi for A$3 million, settled by the issue of 31.7 million shares.
The company’s total shareholding in DNi of 1.03 million shares was acquired at a total cost of A$6 million (about £3.72 million).
DNi is now interested in 58.5 million shares, representing approximately 10.16% of Regency's enlarged issued share capital.
Drilling at the joint venture Mambare lateritic nickel/cobalt project in Papua New Guinea is anticipated to start in April 2011 and end in the third quarter of 2011, comprising 220 holes for a total of approximately 4,000 metres.
The objective of the drilling programme is to define and upgrade to JORC Resource category parts of the area drilled in the 2008 campaign by infill drilling, and to conduct reconnaissance drilling to establish the potential of the higher plateau to the North.
The joint venture was agreed in November 2010.
The partners agreed to co-operate on a 50/50 basis in the piloting and application of DNi's advanced nickel/cobalt leaching technology at Mambare.