Yorkville Advisors, the US based investment manager to a family of funds, has entered into a GBP3m standby equity distribution agreement with Aim and Frankfurt listed Regency Mines.
Yorkville Advisors, the US based investment manager to a family of funds, has entered into a GBP3m standby equity distribution agreement with Aim and Frankfurt listed Regency Mines.
Regency Mines is focused on exploring areas of copper and nickel potential in Western Australia, Queensland, and Papua New Guinea.
The deal was advised out of London.
Regency Mines entered into the agreement as a means of raising additional capital to fund its sulphide nickel and other exploration activities as well as for general working capital.
Pioneered eight years ago by Yorkville, a SEDA offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy. The terms of the SEDA enable Regency Mines, at its discretion, to withdraw funds of up to GBP3m in tranches, in exchange for the issue of new equity, at a discount to the prevailing market price at each drawdown, for up to 24 months from the signing of the agreement.
Paul Strzelecki, managing director, Yorkville Advisors UK, says: ‘The SEDA gives companies the flexibility of financing as and when they need it. This is of crucial importance to a largely event driven industry such as mining. We have a previous relationship with the directors of Regency and are delighted to be completing a financing with them.’
