- Regency to regroup around battery metals and UK energy storage
- Coal and US gas assets for sale
- New management team led by former Sound Energy boss James Parsons
How it’s doing
A placing will raise £831,000 as a part of a refinancing of the business with C4 Energy, a new company part-controlled by Parsons also granted an option to acquire Regency's debt.
Outstanding promissory notes and convertible loans are being restructured and exchanged into new loans of £729,000 and shares equal to around 82% of the share capital.
The new loans will run for two years at an 8% coupon with no conversion rights for holders YA and Riverfort.
Following completion, Regency intends to consolidate its shares on a 100 into one basis
Going forward, the main mining assets will be the Mambare nickel-cobalt project in Papua New Guinea, and a 50% interest in the Dempster vanadium project in the Yukon, Canada,
In the UK, work is currently underway on a single large development site near Liverpool, where two potential stages of development are envisioned under the name of the Southport Energy Centre.
What the boss says: James Parsons, executive chairman designate
“I have been messaging for some time my plan to go back to those micro-cap roots and launch a new vehicle, building on those skills, the learnings of the past and our connectivity to cornerstone investors.
“Regency Mines PLC (LON:RGM) is my chosen company….. it fits on multiple levels including thematically as the world transitions to electric vehicles and a lower carbon economy and therefore requires investment in batteries and specifically battery metals to enable that.
“Regency provides now, post the recent financial restructuring, I believe, the right entry point for myself and my investors.
“It has a diverse legacy new energy portfolio, including the Mambare battery metals project in PNG where I see previously hidden value, and is operating in a sector with strong core growth and huge opportunity.
“I’m not here to pretend Regency’s history isn’t a little “messy” but I see opportunity from this starting point, and I intend to spend the coming years building this company as an executive through a blend of organic development and acquisition.
“I believe battery metals however are a critical part of our future. Despite some short-term price uncertainty largely driven by the ongoing US/China trade war, the battery metals market still represents one of the fastest-growing sectors within the broader energy markets.
“Raw material demand for cobalt and nickel remain strong and we are already seeing the adoption of Electric Vehicles forecast to increase hugely – I believe they are forecasting over 30% by 2040.
“Even within the renewables sector, we are seeing increasing demand for larger batteries to store energy and ease pressure on power grids by levelling out supply / demand imbalances.”
- Sale of coal and oil and gas assets
- Transaction with James Parsons completes
- Details of how business will move forward once refinancing goes through