West Perth-based Regal Resources has entered into a $6.3 million share placement agreement with a UK-based investor to fund a bankable feasibility study for its 30 per cent owned Kalongwe copper project in Africa.
Under the agreement, Tembo Capital Mining Fund has agreed to subscribe to a share placement in two tranches.
The first tranche will be priced at 5 cents per share to raise $1.2 million, with the second tranche priced at 5.5 cents per share to raise $5.1 million.
Following completion of the first tranche, Tembo will have the right to appoint a representative as a non-executive director of Regal.
“The funds raised from the share placement will ensure Regal is fully funded through to the completion of a bankable feasibility study for the Kalongwe project and will also be used to support regional exploration programs, business development and provide the company with funds for general working capital purposes,” Regal said in a statement.
Regal holds a 30 per cent interest in Kalongwe, however it is in talks with joint venture partner Traxys Europe to acquire their 30 per cent stake in the project.
The transaction would result in Traxys becoming a significant shareholder in Regal.
Regal’s share price closed unchanged at 4.1 cents per share.
