James Parsons, the former chief executive of Sound Energy PLC (LON:SOU) is to take over at Regency Mines PLC (LON:RGM) and help fund its push into battery metals.
A placing will raise £831,000 as a part of a refinancing of the business with C4 Energy, a new company part-controlled by Parsons also granted an option to acquire Regency's debt.
Outstanding promissory notes and convertible loans are being restructured and exchanged into new loans of £729,000 and shares equal to around 82% of the share capital.
The new loans will run for two years at an 8% coupon with no conversion rights for holders YA and Riverfort.
Red Rock Resources PLC (LON:RRR) will also receive shares in exchange for £146,000 worth of obligations.
Following completion, Regency intends to consolidate its shares on a 100 into one basis.
Parsons, who will be Regency's executive chairman, said: “The road to a successful carbon transition requires real progress in the exploration and extraction of battery metals and energy storage technology. I see huge opportunity for Regency given its current asset base, particularly supporting the recent rapid growth of electric vehicles.”
Shares in Regency rose 15% to 0.4p in early trading compared to a price for the placing of 0.0275p.