Regency Mines welcomes new investor to Virginia coal venture
Source - SMW
Regency Mines said that Carraigbarre Capital had completed an investment in its Mining Equity Trust coal joint venture in the US state of Virginia.
Carraigbarre Capital had invested $750 into the venture and assumed a 45% stake.
Regency said it now had a 25.8% stake in the expanded share capital of the venture.
'Following extended negotiations and administrative delays the existing shareholders of MET have agreed to invite Carraigbarre Capital into the US coal business in Virginia,' Regency chief executive Scott Kaintz said.
'Carraigbarre has conducted a due diligence process of its own and we are pleased that they have come to a positive conclusion regarding the potential of the business.'
'Both existing partners including Regency have agreed to the reduction in their respective stakes to facilitate this third partner with a view to beginning to realise the promise that attracted them to this investment originally.'
'With fresh capital now flowing into MET, the business must now get down to the hard work of making these assets begin to pay off for its stakeholders.'
'While these funds and a new partner constitute a critical forward step, much work and further capital are required to put the Omega business on a firm pathway to success.'
At 8:21am: (LON:RGM) Regency Mines PLC share price was 0p at 0.07p