The company capitalised the £0.56 costs of exploration at the Botue-Mambare nickel and cobalt project in Papua New Guinea. It said the drilling results had substantially increased the project value.

As a result of placings which raised £0.94m, the group's equity capital rose from £2.25m to £2.74m during the year. Since the year end further fund-raising produced a further £0.59m.

Revenue from sales of investments was £0.13m (previously nil). Exploration expenses rose to £0.13m from £0.12m.

Regency said it took advantage of low nickel prices to substantially extend its holdings in the Lake Johnstone belt and acquire ground near Kambalda in Western Australia.

The company has announced a joint venture agreement with Direct Nickel to apply DNi's nickel/cobalt leaching technology at the Botue-Mambare project.

Regency chairman Andrew Bell said the long-term demand story for nickel appeared to be unchanged.

'Regency will concentrate on progressing the early listing of the DNi joint venture, where there is huge potential for gain. We will also start to explore methodically by drilling our primary targets at Lake Johnstone.

'We are confident that the company has come out of the market downturn far stronger than it went in, and that an exciting year lies ahead.'