Regency Mines is increasing its focus on the battery metals sector where it claims there are significant opportunities.
It is rebranding its nickel/cobalt and related assets as a battery metals function in recognition of the company's position in these mineral resources to be used in EV batteries and related energy technologies.
Operations at Mambare, the company's major nickel/cobalt project, will be accelerated.
Advanced due diligence and discussions are underway to expand the company's coal footprint within its hydrocarbon energy function.
Through a financing it intends to raise £1,050,000 through the issue of 190,909,090 new ordinary shares of 0.01 pence each.
It will use the funds to repay a convertible loan at a cost of around £630,000, leaving Regency free of debt.
Directors Andrew Bell and Scott Kaintz will invest an aggregate £100,000 cash in the strategic financing to acquire 18,181,818 shares.
Bell said: "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. 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."
He added: "Regency's stronger capital base will, we believe, enable it to exploit more effectively the expected improvement in nickel and cobalt demand, both from the battery and the stainless steel sector, after a near nine year bear market in nickel. A weak but consistent uptrend in nickel prices has been underway since late 2015, that we expect to continue."
At 8:20am: (LON:RGM) Regency Mines PLC share price was +0.08p at 0.63p