Aim-listed hydrocarbons and base metals miner Regency Mines has deposited $2-million in escrow, pending completion of the joint venture (JV) funding with privately-owned mining company Legacy Hill, which will see Regency owning 47% of Mining Equity Trust (MET) – a new Delaware-incorporated limited liability company.
This 47% stake represents Regency’s proportionate share of cash contributions after the 30% management share held by Legacy.
The JV is being established for the purposes of structuring and financing acquisitions in the US metallurgical (met) coal sector, and their subsequent management and operation.
The assets of MET at inception are the cash contributions of the JV partners.
"In announcing that we have fulfilled our funding obligations under the JV agreement, we take another small step in the gradual building out of our metallurgical coal mining interests in the US.
“We expect to make further announcements in relation to our coal investments, including in the Rosa mine, shortly,” commented Regency chairperson Andrew Bell.