RTRS : Regency Mines in MoU for Papua New Guinea project
* Agrees to pool Mambare stake with DNi in new co * Says new co to raise funding for developing Mambare * Regency shares indicated up 11 pct (Adds details)
Aug 19 (Reuters) - Regency Mines Plc (RGM.L), a mining exploration and mineral investment company, said on Wednesday it signed a memorandum of understanding (MoU) related to its stake in a nickel-cobalt project in Papua New Guinea.
Regency shares were indicated 11.3 percent up at 1.475 pence at 0700 GMT.
Under the MoU, Regency agreed to pool its interest in the Mambare project with the privately-owned Direct Nickel's (DNi) lateritic nickel/cobalt treatment technology in a new company, in which both parties would have shares.
The new company would raise funding for the further development of Mambare, including a pilot plant, Regency said.
DNi would assume the role as project operator, and both parties would be represented on the board and in the management of the new company, it said. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Gopakumar Warrier)
