Regency Mines (LON: RGM) is to acquire a 50% interest in Weirs Drove Development ("WDD"), a developer of energy storage and solar projects in the UK, for £25,000 in cash.
The natural resource group will acquire the stake through its Flexible Grid Solutions division.
The venture will start with WDD’s initial site in Cambridgeshire which is home to its flagship 30MW energy project and benefits from an offtake offer from Limejump, a subsidiary of Shell New Energies.
Flexible Grid Solutions said it has committed to lend £100,000 once the first project becomes ‘shovel ready’ which the group says is expected shortly.
In support of the transaction, Regency has raised £210,000 at a price of 1p per share, a 5.3% premium to Thursday’s closing price, with £30,000 subscriptions received from the principals of WDD.
Shares in Regency Mines were trading 5.13% higher at 1.025p on Friday morning.
“We are delighted to expand our flexible grid solutions business with multiple new UK projects, several of which have early potential to be revenue generating and one of which comes with an offtake offer from Limejump, a Shell subsidiary,” said Scott Kaintz, CEO of Regency Mines.
“This acquisition is intended to deliver our key corporate objectives of near-term cash generation and follows our recent discounted debt acquisition bolstering our Battery Metals business, which is already benefiting from recent encouraging movements in Nickel prices.
The Flexible Grid Solutions division, with its low-risk near-term cash flow potential in the UK, continues to offer Regency investors an attractive balance to the significant blue-sky upside of the Company's battery metals mining portfolio,” Kaintz added.
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