Regency Mines PLC (LON:RGM) has exercised its option to acquire a 50% interest in a North American vanadium project from Breakaway Exploration Management Inc.
The firm had originally acquired the option in December for a fee of £25,000, which was settled through the issue of 5mln new shares at 0.5p apiece – a 43% premium to the market price when the deal was agreed.
READ: Regency Mines secures option to acquire 50% of a North American vanadium project
The project includes 196 claims covering 40.96 square kilometres covering a mineralised trend with up to 20 kilometres of potential strike, with the target being primary vanadium in black shale as historic exploration had outlined numerous broad zones of strongly anomalous vanadium.
Regency will now become the operator of the project, while Breakaway had agreed to subscribe for 53,109,600 shares in Regency at a fixed price of 0.5p each.
Andrew Bell, chairman of Regency, said: "This is a potentially major project and builds on one of our two core strengths: our early involvement in battery metals and related technologies. It has additional synergies with the static power storage element of our subsidiary ESTEQ's AES grid backup and private grid/CHP business.”
In lunchtime trading Thursday Regency shares were at 0.35p.