StockMarketWire.com - Regency Mines said it was in funding talks with various stakeholders and may lose control of key US assets if it can't repay its borrowings on time.

Last month, shareholders at Regency Mine's annual general meeting gave the company the authority to issue news shares.

But they did not grant authority to disapply pre-emption rights over any issuance that might occur.

'The defeat in the recent AGM and lack of associated pre-emption rights has largely removed this access to capital,' the company said.

'As such the board has been in discussions with various stakeholders concerning the ongoing requirements of the business, which include both operational and financial obligations.'

Regency Mines said it was in ongoing discussions with a group of institutional investors regarding several payments that may be due under the terms of the company's existing loan note.

'The company's potential inability to meet these payments may require additional restructuring of its debt load and could result in the company forfeiting control of its interests in Mining Equity Trust and the US coal operations, as these assets have been pledged as collateral to the company's lenders,' it said.


At 9:44am: [LON:RGM] Regency Mines PLC share price was -0.05p at 0.13p



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