US-focused coal mining company Regency Mines Plc (LON: RGM) provided a series of updates on its Metallurgical coal interest – specifically on developments in the Mining Equity Trust and Omega mine.
On the Mining Equity Trust; investment company Carraigbarre Capital Limited invested $750,000 on behalf of clients of White November, for a 45.02% interest in MET as well as a seat on the board. Regency still holds a 25.84% in the expanded share capital of MET.
On Omega; Legacy Hill Resources remains the operator of the mine and a forbearance agreement has been signed,
“MET loan note obligations to Omega sellers of $8.17m rescheduled over period to October 2020”
“Forbearance agreement currently in default following delays in CCL funding”, Regency’s statement read.
The Company said funds received were deployed to recapitalise the MET.
“Additional funding [is] required to ensure long-term stability of the business”
“Longer term plans in place to install a wash plant and upgrade saleable product subject to additional capital being made available”
Regency Mines Comments
Scott Kaintz, CEO of the Company, attached the following comments to today’s update,
“Following extended negotiations and administrative delays the existing shareholders of MET have agreed to invite Carraigbarre Capital into the US coal business in Virginia. Carraigbarre has conducted a due diligence process of its own and we are pleased that they have come to a positive conclusion regarding the potential of the business.”
“Both existing partners including Regency have agreed to the reduction in their respective stakes to facilitate this third partner with a view to beginning to realise the promise that attracted them to this investment originally.”
“With fresh capital now flowing into MET, the business must now get down to the hard work of making these assets begin to pay off for its stakeholders. While these funds and a new partner constitute a critical forward step, much work and further capital are required to put the Omega business on a firm pathway to success.”
The Company’s shares dipped 5.14% or 0.0036p to 0.066p a share as trading closed on Tuesday 09/07/19 16:30 GMT.
Elsewhere in the mining and minerals sector, recent updates have come from; Acacia Mining PLC (LON: ACA) Arc Minerals Ltd (LON: ARCM) Thor Mining PLC (LON: THR) Premier African Minerals (LON: PREM), Pathfinder Minerals (LON: PFP), AfriTin Mining Ltd (LON: ATM) and Ferrexpo Plc (LON: FXPO).