Andrew Bell, Chairman of Regency Mines


Andrew Bell talks to Share Talk in relation to the Heads of Terms signed by Regency Mining to acquire a significant shareholding in Carbon Minerals Corporation located in Alabama, United States.

We discuss the mine and the further potential on the ground and the due diligence process to be undertaken before making a proposal to shareholders to complete the agreement of shareholder approval hopefully within a month.

Key Highlights:

· Regency has signed a conditional binding Heads of Terms 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;

· Regency to 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;

Metallurgical Coal – Heads of Terms

Andrew Bell, Chairman of Regency Mines comments: “This is an opportunity for Regency Mines to acquire a stake in a metallurgical coal project in a safe jurisdiction which appears to have potential for early cash flow. In the event that after due diligence we proceed, the shareholders’ agreement will contain a payout provision to ensure regular distributions, as well as normal shareholder protections.


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