JOHANNESBURG (miningweekly.com) – London-listed Regency Mines plans to reposition itself to fully leverage the mineral resources to be used in the rising electric vehicle (EV) batteries and related energy technologies.
The company on Thursday said in an update to shareholders that it aimed to rebrand its nickel/cobalt and related assets in the battery metals industry, prepare for the changes in product demand that would emerge from the development of the electric battery market and meet the growing requirement for traceability and ethical sourcing of raw materials.
“Regency Mines faces a significant opportunity in the fast-evolving battery metals sector. We intend to focus on the nickel/cobalt sector, while still proactively developing our hydrocarbon and coal interests with a view to achieving early cash flow,” Regency chairperson Andrew Bell commented.
“We believe we can find value creation opportunities for shareholders as EV battery and power storage demand see advances in battery technology and this leads to changes in the pattern of demand for key metals.”
Meanwhile, Regency is preparing to accelerate operations at its 50%-owned Mambare nickel/cobalt project, in Papua New Guinea, amid the expected improvement in nickel and cobalt demand, both from the battery and the stainless steel sector, after a nine-year bear market in nickel.
Given the current metal prices of nickel of $12 600/t and cobalt at $75 300, the magnitude and potential of Mambare was readily apparent, said Bell.
Further, advanced due diligence and discussions were underway to increase its stake in the Rosa coal mine, in the US, to 100%.
“We expect to devote significant time and effort to high-value metallurgical coal opportunities in the US during 2018 and we will advise the market accordingly as transactions are concluded,” he added.
Regency Mines also raised £1-million through the placement of 190.9-million new ordinary shares of 0.01p apiece in the company at a price of 0.55p a share.
Regency planned to use the funds to repay a convertible loan at a cost of £630 000, leaving Regency’s balance sheet debt-free for the first time since 2011.
CREAMER MEDIA DEPUTY EDITOR ONLINE
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