Regency Mines announces corporate restructure, new chairman

Natural resource exploration and development company Regency Mines announced a corporate restructuring on Thursday, including board changes, a proposed placing, share consolidation and restructuring of its balance sheet.

The AIM-traded firm also announced that C4 Energy - a UK incorporated private company part-controlled by its proposed new chairman - has secured an option to acquire Regency's remaining debt.

It proposed James Parsons to join the company as its new executive chairman, and confirmed gross proceeds of £0.83m would be raised in the placing at a price of 0.0275p per share.

Promissory notes of approximately £1m would be retired, the board confirmed.

It also said that C4 Energy had acquired an option to purchase its residual debt, following a restructuring which reduced its total obligations to £0.729m from £1.9m, and extended the term to 2021 with no conversion rights.

Finally, the firm confirmed it had planned a corporate rebranding exercise.

“The road to a successful carbon transition requires real progress in the exploration and extraction of battery metals and energy storage technology,” said James Parsons.

“I see huge opportunity for Regency given its current asset base, particularly supporting the recent rapid growth of electric vehicles, and I am delighted to join as executive chairman with a view to building the business through a blend of organic development and acquisition.”

Nigel Burton, outgoing non-executive chairman, added that the developments were the culmination of a multi-month effort to “establish the foundations” of growth and value creation for Regency.

“We welcome James Parsons joining as part of the restructuring process, and we look forward to a renewed focus on project development under his leadership.”

At 1607 GMT, shares in Regency Mines were up 23.08% at 0.04p.