RGM minesite article with Fraser Range...

RGM minesite article with Fraser Range information.

http://minesite.com/news/regency-mines-has-two-major-value-catalysts-coming-up-one-with-direct-nickel-and-the-other-at-fraser-range

Thanks to the spectacular discoveries of Regency’s neighbour on the Fraser Range, Sirius Minerals, it’s still possible to raise exploration money for this district.

And that’s exactly what Regency is currently doing, by spinning off its Fraser Range interests into Aussie vehicle Ram Resources. This process is fairly well advanced, as the two parties have been in talks for many months, and Ram already holds 10 per cent of the Regency tenement, known as Fraser West.

Under terms announced on 1st July, Ram will acquire a further 70 per cent of Fraser West and in return Regency will take 20 per cent of Ram, while retaining a free carry on Fraser West into production. In addition, Regency will take A and B shares which will vest once certain milestones relating to resources and a decision to mine are reached.

It’s a nice bit of accretive business for Regency, and Andrew is pretty pleased with the way things are turning out. “We’re very happy with that particular asset”, he says. “The more we find out about it, the happier we get.”

Anyone interested in the potential for “nearology” should note that Sirius has been drilling just over the boundary of Regency’s tenement, and that results should be out very soon. A decent set of numbers could set Ram on its way very nicely

“It’s the early stages of exploration of what could be a new mineral province”, says Andrew.

“We are right at the beginning and right at the heart of it, and it does say something about us that we got into this, because we’ve been looking at this boundary between the Yilgarn and Albany-Fraser for quite some time.”

So, as the only Aim-traded junior with direct exposure to the upside at Fraser Range, Regency does hold significant attractions. After all, Sirius, which made the initial discovery at Fraser Range, went from a valuation of virtually nothing to close on a billion dollars.

Will the same thing happen to Ram? Who knows.

But Andrew is optimistic that the upside is there. “The prospects for Ram are good”, he says. “If there’s any sort of exploration success it could go quite a bit higher.”

And there’s also the question of the peer group. “Ram is the smallest by a very great degree”, says Andrew, referring to the other Fraser Range hopefuls. “And yet I don’t think anyone would look at it and say its holdings are the worst.”