• Regulus Resources (REG) has completed a US$5 million investment from Osisko Gold Royalties in exchange for a net smelter return
  • It also includes a right (currently held by Regulus) to buy back a 1-per-cent NSR from a third party on certain claims of AntaKori
  • The company plans to use the proceeds from the investment for exploration activities at AntaKori and general corporate purposes
  • This investment is the second completed by Osisko on the AntaKori project
  • Regulus Resources Inc. is a mineral exploration company
  • Regulus Resources Inc. was up 7.143 per cent, trading at C$0.90 at 12:07 PM ET

Regulus Resources (REG) has completed a US$5-million investment from Osisko Gold Royalties in exchange for a net smelter return (NSR).

The NSR ranges from 0.125 per cent to 1.5 per cent on certain claims of the company’s AntaKori project.

It also includes a right (currently held by Regulus) to buy back a 1-per-cent NSR from a third party on certain claims of AntaKori.

The company plans to use the proceeds from the investment for exploration activities at AntaKori and for general corporate purposes.

This investment is the second completed by Osisko on the AntaKori project. The first was the strategic partnership between Regulus and Osisko, announced on October 1, 2020.

The Investment represents significant financing in challenging capital markets.

The investment brings cash into the treasury with no dilution to shareholders. It also allows Regulus to continue to advance exploration activities on the AntaKori project and maintain its social commitments.

Furthermore, it represents a strong technical endorsement for the AntaKori project.

“The continued support of Osisko is a strong endorsement of the AntaKori project, and given that equity markets are currently very challenging, we believe this transaction adds value to shareholders by avoiding equity dilution while providing Regulus with cash to continue to advance work programs at AntaKori,” stated John Black, Chief Executive Officer of Regulus.

The next major milestone for the project will be a decision on the Colquirrumi earn-in claims whereby Regulus can earn up to 70-per-cent interest from Buenaventura by completing 7,500 m of drilling.

Regulus Resources Inc. is a mineral exploration company whose principal project is the AntaKori copper-gold-silver project in northern Peru.

Regulus Resources Inc. was up 7.143 per cent, trading at C$0.90 at 12:07 PM ET.

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