Regency Mines (LON:RGM, FRANKFURT:RM4) has entered into a loan agreement with YA Global Master SPV, advised by Yorkville Advisors LLC, for US$2 million to finance its investment in Oracle Coalfields (PLUS:ORCP).
The loan is secured under the Standby Equity Distribution Agreement (SEDA) between Regency 20.96 percent associate Red Rock Resources (LON:RRR) and YA Global and by security over certain liquid assets of Regency, including 30 million shares in Red Rock.
The annual interest stands at 12% and is repayable in eight instalments with the last instalment due on 26 November 2011.
The £1 million investment in Oracle was announced on November 12. Regency Mines said it was buying 18.5 million shares for 5.5 pence each to take a 10.4% stake in the business.
Oracle, which is developing a 1.4 billion tonne JORC measured lignite coal project in Pakistan's Sindh Province, also unveiled plans to list on AIM in the first half of 2011.
Regency will make a further and fuller announcement on Mambare and its investment in Direct Nickel shortly.
On November 18, Regency reported it reached agreement to invest in Direct Nickel (DNi) and jointly finance an exploration programme at the Mambare lateritic nickel/cobalt project in Papua New Guinea.
Regency's investment will be for a total amount of US$6 million in two equal tranches of US$3 million.
Regency also reported that with effect from today its ordinary shares are now traded on SETS (the Stock Exchange Trading System), the London Stock Exchange's Flagship electronic order book.
Shares in Regency climbed 5% on today's news.