Regency Mines (LON:RGM) has moved a step closer to selling a stake in the Fraser West project in Australia to Ram Resources (ASX:RMR).
Ram shareholders, on October 8, approved all resolutions associated with the sale, including a A$1.5mln fundraise and a 30:1 share consolidation of Ram's capital, Regency said.
As reported at the end of July, the fundraising sees five billion Ram shares issued at A$0.0003 each.
Fraser West, which is prospective for gold and base metals, consists of three tenements with an area of 271 sq km.
Ram will acquire a further 70% of the tenements - to take its holding to 80% - while Regency will take a 19.9% stake in Ram though the issue of new shares.
The initial share consideration to Regency of 19.9% of the enlarged outstanding capital of Ram will be worked out based on the total issued capital of Ram following the placing.