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REGIS RESOURCES LIMITED Capital/Financing Update 2006
65733_rns_2006-09-28_313fedc3-0cad-48ec-9460-a7a6d73830a5.pdf
Capital/Financing Update
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29 September 2006
Manager Announcements Company Announcements Office Australian Stock Exchange Limited 4th Floor, 20 Bridge Street Svdnev NSW 2000
Level 11, 461 Bourke Street Melbourne Victoria 3000 Australia
Telephone: +61 3 8602 6500 Facsimile: +61 3 8602 6560
Dear Sir
Regis moves to 80% of Duketon joint ventures
The Directors of Regis Resources NL (ASX:RRL) are pleased to announce that the Company has today exercised a call option over a further 26% of the shares in Newmont Duketon Pty Ltd. The exercise of the option will result in Regis increasing its ownership of Newmont Duketon from 49% to 75%, and increasing its economic interest in the two Duketon joint ventures from 59.2% to 80%.
The Duketon joint ventures contain the Moolart Well gold deposit and the prospective Collurabbie properties.
Background
In March 2005 Regis reached agreement with Newmont Australia Limited, to restructure the Duketon Region and the Rosemont Duketon joint ventures. Final terms were agreed on 14 December 2005, and Regis purchased an initial 49% of Newmont Duketon on 3 February 2006. Consideration for this purchase was the issue to Newmont Capital Pty Ltd of 256 million Regis shares. Included in the revised arrangements was the grant to Regis of a call option over a further 26% of the shares of Newmont Duketon. In addition, Newmont was also granted an option to put up to 51% of the shares in Newmont Duketon to Regis.
The Call Option Exercise
On 29 September 2006, Regis advised Newmont that the sole funding conditions for the exercise of the call option had been met, and duly exercised the option. Consideration for the equity purchase is based on a formula linked to Regis' share price, and totals approximately \$24.865m. The transaction can be settled in a number of alternate methods, one being a further issue of ordinary shares in Regis and if this alternate is agreed, it will be conditional on Regis securing shareholder approval which will be sought at the Company's Annual General Meeting, expected to be on the 24th November 2006 and completion will occur within 5 days of that meeting.
Yours sincerely
David Walker Managing Director
For further information contact:
Mr David Walker Managing Director Regis Resources NL 03 8602 6500
Dr Michael Folie Chairman Regis Resources NL 03 8602 6500