Regulus Signs Option Agreement with Gold Fields to Further Consolidate Land Position for the AntaKori Copper-Gold Project
16 February 2021 - 11:00PM
Regulus Resources Inc. ("Regulus" or the
"Company", TSX-V: REG, OTCQX: RGLSF) is pleased to
announce that it has entered into an option agreement whereby the
Company can earn up to a 60% interest in certain claims
(“GF Claims”) from Gold Fields La Cima S.A.
(“
Gold Fields”), a subsidiary company of Gold
Fields Ltd. The addition of the GF claims (see Figure 1) grows the
Company’s land position in the AntaKori copper-gold project, will
increase future resource estimations via the ability to deepen and
pushback the current conceptual resource pit on to these claims,
and provide additional exploration opportunities to increase the
mineralized footprint at the AntaKori project.
The terms of the option agreement are as
follows:
- Regulus can earn a
60% interest in the GF Claims by incurring US$3.5 M in exploration
expenditures over a 3-year term, including completing at least
2,500 m of diamond drilling and producing a 43-101 resource
estimate incorporating the GF Claims. Upon completion, Regulus and
Gold Fields will form a joint venture with Regulus having a 60%
interest and Gold Fields a 40% interest.
- Upon formation of the joint
venture, Gold Fields will have a 60-day window to decide if they
wish to acquire an additional 20% interest in the joint venture
(“Claw Back Right”), bringing their total interest
to 60% and Regulus’ position to 40%, in exchange for:
- A cash payment of US$7.5 M to be
paid to Regulus.
- Sole funding US$5 M in exploration
commitments over a 5-year period.
- Upon finalizing the ownership
structure of the joint venture, both parties will be required to
fund their respective portions towards future exploration
activities, and standard dilution policies will apply.
- Any party that dilutes below a 10%
interest in the joint venture will effectively relinquish their pro
rata ownership and will maintain a 1.5% Net Smelter Return Royalty
(“NSR”) interest, 0.5% of which can be bought back
by the other party for US$2.5 M within 60 days of the announcement
of commercial production on the property.
- If Gold Fields exercises its Claw
Back Right, Regulus will maintain a right to expand a mining
operation from its existing claims onto the GF Claims
(“Development Right”) subject to the general
principle that it does not interfere with current or planned mining
activities of the joint venture at the time.
- Upon exercising the Development
Right, Regulus would pay the joint venture a 5% NSR (effectively a
3% NSR payable to Gold Fields, and a 2% NSR payable to Regulus) for
any minerals processed from the GF Claims.
- In addition, Regulus would be
responsible for all development costs, all operating costs, and all
environmental and closure costs (closure costs and environmental
costs for any stand-alone mining operation on the GF claims, would
be paid by the joint venture).
- The Development Right will also be
available to Regulus if Gold Fields does not exercise its Claw-Back
Right, with a 5% NSR payable by Regulus to the joint venture
(effectively 2% NSR payable to Gold Fields and 3% NSR payable to
Regulus) on any minerals processed from the GF Claims, and Regulus
will be responsible for all development costs, all operating costs
and all environmental and closure costs.
John Black, CEO and Director of
Regulus, commented: "Signing this
agreement is a key step forward for the AntaKori project. The
addition of these claims is strategic to the Company for several
reasons. First, it significantly expands the AntaKori land position
and further consolidates the region. Second, adding these claims
allow us to layback our current resource estimation pit further
than we could previously, which should add resources that are
already classified but not within the current constraints of the
estimated resource pit, and thus not reportable. Third, these
claims are in the immediate vicinity of known mineralization and,
while limited work has been completed on them to date, they present
opportunities to expand the mineralized footprint at AntaKori.
Finally, we are partnering with a well-regarded group in Gold
Fields who have been operating in the region for quite some
time.”
John Black added: “The key
takeaways from this agreement are that Regulus has expanded its
land position in a prolific district, added new targets to be drill
tested, and that under any scenario, Regulus can now layback a
mining operation onto the claims in this agreement.”
ON BEHALF OF THE REGULUS
BOARD
(signed) “John Black” John BlackCEO and
Director
For further information, please
contact:
Regulus Resources Inc. Laura
BrangwinInvestor Relations ManagerPhone: +1 646 583-1404 Email:
laura.brangwin@regulusresources.com
About Regulus Resources Inc. and the
AntaKori Project
Regulus Resources Inc. is an international
mineral exploration company run by an experienced technical and
management team. The principal project held by Regulus is the
AntaKori copper-gold-silver project in northern Peru. The AntaKori
project currently hosts a resource with indicated mineral resources
of 250 million tonnes with a grade of 0.48 % Cu, 0.29 g/t Au and
7.5 g/t Ag and inferred mineral resources of 267 million tonnes
with a grade of 0.41 % Cu, 0.26 g/t Au, and 7.8 g/t Ag (see press
release dated March 1, 2019). Mineralization remains open in most
directions.
For further information on Regulus Resources
Inc., please consult our website at www.regulusresources.com.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements regarding Regulus, including
management's assessment of future plans and operations, may
constitute forward-looking statements under applicable securities
laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Regulus' control. Often,
but not always, forward-looking statements or information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate" or
"believes" or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved.
Specifically, and without limitation, all
statements included in this press release that address activities,
events or developments that Regulus expects or anticipates will or
may occur in the future, including the proposed exploration and
development of the AntaKori project described herein, the
completion of the anticipated drilling program, the completion of
an updated NI 43-101 resource estimate and management's assessment
of future plans and operations and statements with respect to the
completion of the anticipated exploration and development programs,
may constitute forward-looking statements under applicable
securities laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Regulus' control. These
risks may cause actual financial and operating results,
performance, levels of activity and achievements to differ
materially from those expressed in, or implied by, such
forward-looking statements. Although Regulus believes that the
expectations represented in such forward-looking statements are
reasonable, there can be no assurance that such expectations will
prove to be correct. The forward looking statements contained in
this press release are made as of the date hereof and Regulus does
not undertake any obligation to publicly update or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities law.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/16feb0fa-6098-404c-a270-3d6400b63a1f
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