Regency Mines inks new agreement with Mambare partner

Natural resources development outfit Regency Mines has proposed a new work plan at its Mambare joint-venture in Papua New Guinea following the signing of a fresh agreement with its partner on the project.

While Regency's licence renewal application for EL1390 awaits Ministerial signature following its approval by the Mining Advisory Council in Papua New Guinea, the AIM-listed firm submitted a new work plan for the asset on behalf of Direct Nickel - its JV partner.

Regency has also reached a framework agreement with its 50% partner and received interest from third parties wishing to co-operate on the development of the Mambare nickel and cobalt project.

Chairman Andrew Bell, said: "The Mambare project joint venture we have always considered a remarkable opportunity for Regency Mines and the anticipated renewal of the exploration licence for two years occurs at a key point in the mineral cycle where interest in nickel and cobalt is increasing enables us to plan strategically."

"We welcome the agreement reached with our JV partner. We had conveyed concerns relating to changes in their structure and how their share of expenditure would be funded. The new arrangements allay these concerns, we welcome their new commitment and now we will address the issues of future funding and exploration co-operatively, to the great benefit of both parties."

As of 0905 GMT, Regency Mines shares had slipped 3.85% to 0.31p.