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Regency Mines to increase stake in Ram Resouces

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Regency Mines (LON:RGM) said its associate company Ram Resources has completed its funding plan that will see 40.6mln Ram shares issued to Regency.

Ram raised A$1.5mln by placing 187.5m Ram shares at 0.8 cents a pop, with attached warrants on a 1 for 2 basis that may be exercised at 2.5 cents any time up to February 2017.

Ram shareholders also approved the issue of a second tranche of 157.5mln placing shares.

As previously announced, Ram’s share purchase plan (SPP) was 1.9 times subscribed, raising A$700,000 for the company. In response to this, Regency has exercised its right to convert part of its carried interest in the Fraser Range tenements at the 0.8 cents SPP price and at the rate of A$ 50,000 for each 1%, provided the effect of such conversion is not to breach takeover rules in Australia (which in this instance means remaining below a 20% holding in Ram).

At present, Regency has a 16.5% stake in Ram, but has given notice of conversion of a further 5.6% of its carried interest.

"Our strategy of placing our Fraser Range tenements in an Australian listed vehicle so that it could gain a local following and an autonomous funding capacity has been fulfilled and vindicated. We have now given notice of exercise in respect of 12.1% of our total carried interest of 20% in the Fraser Range Project, and expect to retain post all issues of Ram stock a 19.9% shareholding level," said Andrew Bell, chairman of Regency.

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