Regal Resources (ASX:RER) has signed a commitment with an affiliate of Sprott Inc. (TSX:SII) to raise $2 million via placement at $0.05c per share with accompanying option exercisable at $0.08c within three years.
The placement options will have a feature whereby Regal can accelerate the expiry date if its share price closes above $0.1 for ten consecutive trading days, and if exercised, have the potential to raise a further $3.2 million.
Sprott is a leading North American asset management firm with a track record of identifying and supporting emerging resource companies.
Sprott’s commitment provides an additional market endorsement for Regal’s Kalongwe Copper-Cobalt Project located in the Katanga Province of the Democratic Republic of Congo.
Funds from the placement will advance development of Kalongwe through completion of Phase 2 drilling, payment of the final instalment to GICC for Regal’s 30% interest in Kalongwe Mining SA and to complete Phase 2 Scoping Studies.
Potential new projects are also being assessed.
Regal is also in advanced negotiations with Traxys Europe SA to acquire its 30% interest in Kalongwe. This transaction would increase Regal's interest in Kalongwe from 30% to 60% and result in Traxys becoming a significant shareholder in Regal.
Traxys is a major metals and natural resources marketing, distribution and trading firm with over 300 employees worldwide and annual turnover in excess of US$6 billion.
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