VANCOUVER, British Columbia, October 14, 2022 (GLOBE NEWSWIRE) — Regulus Resources Inc. ((“, Regulus”, or the “, company”, , TSXV:REGOTCQX:RGLSF) is pleased to announce the completion of a $5 million investment (the “Investment”) from Osisko Gold Royalties (“Osisko”) in exchange for a Net Smelter Return (“NSR”) of between 0.125% and 1.5% on certain claims of the Company’s AntaKori project (“AntaKori”) and a right (currently held by Regulus) to repurchase from a third party a 1% NSR on certain of AntaKori’s claims. Proceeds from the investment will be used for exploration activities at AntaKori and for general corporate purposes. This investment is the second Osisko has completed on the AntaKori project. The first was the strategic partnership between Regulus and Osisko announced on October 1, 2020 (the “Strategic Partnership”).
highlights
- The investment represents significant financing in challenging capital markets.
- No incremental royalty on the claims where Osisko earned a 0.75-1.5% NSR through the strategic partnership in 2020 where the majority of the current NI 43-101 resources reside.
- The deal is structured such that NSRs issued in connection with the investment, combined with existing outstanding royalties, will not exceed 1.5%.
- Brings cash to the treasury without diluting shareholders.
- The investment allows Regulus to further advance exploration activities at the AntaKori Project and maintain its social commitments.
- Provides strong technical support for the AntaKori project.
Regulus Chief Executive Officer John Black commented:
“Osisko’s continued support is a strong endorsement of the AntaKori project. With equity markets currently very challenging, we believe this transaction will add value to shareholders by avoiding equity dilution while providing cash to Regulus to further advance work programs at AntaKori.”
“The next major milestone for the project will be a decision on Colquirrumi’s earn-in claims…
