Regency Mines confirms acquisition of Horse Hill stake

AIM-listed Regency Mines has completed the acquisition of a 5% interest in the Horse Hill development near Gatwick Airport from Angus Energy for £400,000.

The deal, which was announced on Monday, will see Regency pay part of the consideration through the issue of 54.23m shares to Angus at 0.325p each. This will give Angus a 29.9% stake in the company.

In addition, Regency has given Angus options over another 17.9m shares, which can be exercised at 0.39p each within the next 18 months.

Chairman Andrew Bell said on Monday: “We sold out of the same percentage of HHDL last year. We now buy back on broadly equivalent terms.

“With the additional information now available, the asset now meets the investment criteria stated then. The timing of progress to production can be better quantified and in our opinion the potential and scale of the rewards now far outweigh the risk."

At 1317 GMT, Regency shares were up 80% to 1.12p.