Regulus Resources Inc. Announces C$10 Million Financing
December 16 2019 - 4:45PM
Regulus Resources Inc. (“Regulus” or the “Company”) has announced
today that it has entered into an agreement with BMO Capital
Markets (“BMO”), as sole underwriter, under which BMO has agreed to
buy on bought deal basis 6,368,625 units (the “Units”), at a
price of C$1.06 per Unit (the “Offering Price”) for gross proceeds
of approximately C$6.8 million (the “Public Offering”). Each Unit
consists of one common share (“Common Share”) of Regulus and
one-half of one common share purchase warrant (each whole common
share purchase warrant a “Warrant”) of Regulus. Each full Warrant
will entitle the holder thereof to purchase one Common Share of the
Company at a price of $1.70 per Common Share, for a period of 24
months following the Closing Date.
Concurrent with the Public Offering, Regulus has
entered into an agreement with Route One Investment Co. LP, the
Company’s largest shareholder, on a non-brokered private placement
basis at the Offering Price for gross proceeds of approximately
C$3.2 million.
Regulus expects management, directors, and
officers of the Company to participate for a minimum of 8% of the
Offering.
The Company has granted the Underwriters an
option, exercisable at the offering price for a period of 30 days
following the closing of the Offering, to purchase up to an
additional 15% of the Offering to cover over-allotments, if any.
The Offering is expected to close on or about December 27, 2019
(the “Closing Date”) and is subject to Regulus receiving all
necessary regulatory approvals.
The net proceeds of the offering will be used to
fund exploration and development activities at the Company’s
AntaKori project, for working capital, and general corporate
purposes.
The Units will be offered by way of a prospectus
supplement in each of British Columbia, Alberta, and Ontario and
may also be offered by way of private placement in the United
States.
The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
For Further Information, please
contact:
Regulus Resources Inc.
John E. BlackCEO / DirectorPhone: +1 303
618-7797 mobile+1 720 514-9036 officeEmail:
john.black@regulusresources.com
Adam GreeningVice President, Corporate
DevelopmentPhone: +1 647 923 7799Email:
adam.greening@regulusresources.com
Laura BrangwinManager, Investor RelationsPhone:
+447517313833Email: 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 and drilling is currently underway to confirm and
increase the size of the resource.
For further information on Regulus Resources
Inc., please consult our website at www.regulusresources.com.
Cautionary Note Regarding Forward
Looking Statements. This news release contains certain
forward-looking statements, including statements regarding the
Offering, the level of insider participation therein and the use of
proceeds therefrom. These statements are subject to a number of
risks and uncertainties. Actual results may differ materially from
results contemplated by the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include: receipt of regulatory approvals
for the Offering; changes in metal prices, changes in the
availability of funding; unanticipated changes in key management
personnel and general economic conditions. Mining is an inherently
risky business. Accordingly the actual events may differ marginally
from those projected in the forward-looking statements. When
relying on forward-looking statements to make decisions, investors
and others should carefully consider the foregoing factors and
other uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to
update any forward looking statements, oral or written, made by
itself or on its behalf.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Regulus Resources (TSXV:REG)
Historical Stock Chart
From Apr 2024 to May 2024
Regulus Resources (TSXV:REG)
Historical Stock Chart
From May 2023 to May 2024