Regency Mines in need of urgent funding as coal operations stall

Regency owns 47% of MET and needs to make a US$565,000 payment to its partner

Regency Mines is behind on payments to MET joint venture

Regency Mines PLC (LON:RGM) has warned it might have to cede ownership of its coal assets in Pennsylvania, having fallen behind on its obligations.

Regency owns 47% of MET, the joint venture running the coal operation, and now needs to make a US$565,000 payment to its partner.

Production at the Omega operation has been running below expectations due in part of lack of funds, which has meant one of the two high wall excavators being idled.

READ: Regency Mines making "great progress" with all its operations

MET requires additional working capital of approximately $400,000-500,000 to make up the cash shortfall, pay off creditors and allow for further investments such as a wash plant to boost sales of metallurgical coal.

Regency added it has fallen behind on its scheduled payments to MET, which has exacerbated the situation.

At the annual meeting in January, Regency's shareholders refused to give permission for the company to waive pre-emption rights if it issued more shares.

That had severely hampered its ability to raise equity finance said the statement.

Loans to the joint venture are secured on its MET and the US coal assets and if it continues to miss payments these might be forfeited said Regency.

A restructuring of the balance and capital structure are planned with an open offer and placing with existing shareholders also likely  

In the meantime, talks are ongoing with its banks with managerial changes and a strategic review of its entire portfolio proposed if it can sort out its financial situation.

Quick facts: Corcel

Price: 1.1055 GBX

Market: LSE
Market Cap: £2.1 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Corcel named herein, including the promotion by the Company of Corcel in any Content on the Site, the Company receives from said issuer annual...


Regency Mines CEO discusses new storage and solar opportunity and latest at...

Regency Mines PLC's (LON:RGM) CEO Scott Kaintz discusses with Proactive London's Andrew Scott the acquisition of a 50% interest in Weirs Drove Development Ltd (WDD) - a developer of energy storage and solar projects in the United Kingdom. Kaintz also reports on a positive outcome from the...

on 20/7/20

2 min read