MiningMaven Podcast No 59 with Andrew Bell Chairman and CEO of Regency Mines (LON:RGM) #RGM
Our guest on today's podcast is Andrew Bell, Chairman and CEO of Regency Mines (LON:RGM).
The Company announced today that it has signed Heads of Terms to acquire a significant shareholding in Carbon Minerals Corporation ("CMC"), a Delaware Company which has entered into an agreement to acquire the Rosa metallurgical coal mine (the "Rosa Mine") located in Alabama, United States of America in the Warrior Coal Basin.
Terms are to acquire a 20% shareholding in CMC, a special purpose company formed to hold the Rosa Mine which is being acquired for an aggregate consideration of US$1.65 million payable US$25,000 monthly plus a royalty per ton produced. The company will pay an initial refundable cash deposit of £50,000 with a further £200,000 due after due diligence and completion of a shareholders' agreement, expected to be on or before 23 December 2016. The Rosa Mine received in 2010 a NI 43-101 report prepared by McGehee Engineering Corporation stating that Phase 1 of the Rosa Mine project contained Proven Reserves of 453,000 tons of coal at an average 14,070 BTU/lb with 5.14% average moisture content and 4.45% average ash content;
Assumptions to be tested as part of the due diligence include that CMC will start coal production at Rosa Mine within three months and will before then utilise the preparation plant on site to wash coal on behalf of third parties The full details of the announcement can be seen here: http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1480063961522897600.html
In today’s podcast Andrew discusses the significance of this news and how the rise in commodity prices have yet to impact the asset value of projects in the sector. We hope you enjoy listening.
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This interview was recorded on Friday 25th November 2016.
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