Regulus Resources Inc. ("Regulus",
TSX-V: REG,
OTCQX: RGLSF) and
Osisko
Gold Royalties Ltd
(
“Osisko”,
OR TSX, OR NYSE) are pleased to
announce that they have entered into a strategic partnership (the
“
Partnership”) whereby Regulus has agreed to grant
certain rights to Osisko in exchange for an upfront cash payment
(the “
Upfront Payment”) of US$12.5 M (C$16.6 M).
Details of the Partnership are as follows:
• |
There are existing royalties covering various
claims on the AntaKori project currently held by private parties as
described in Regulus’ NI 43-101 technical report dated February 22,
2019. In the event Regulus acquires any existing royalties within
the current project area or within a 1 km area of interest
surrounding the project on claims owned 100% by Regulus, (see
Figure 1), Osisko will have the option to acquire 50% of the
acquired royalty by paying 75% of Regulus’ purchase price for the
royalty; |
|
|
Ο |
As a
significant initial transaction under the Partnership, Regulus has
acquired a royalty on the Mina Volare claim of the AntaKori project
which represents a 1.5% or 3% NSR depending on location (see Figure
2), from a private vendor. As per its right under the Partnership,
Osisko has elected to acquire 50% of the royalty for 75% of
Regulus’ purchase price with Osisko’s acquisition cost for the
royalty included in the Upfront Payment. Regulus has retired the
remaining 50% of the royalty. As such, the Royalty on the Mina
Volare claim is now reduced to a 0.75% or 1.5% depending on
location, in favour of Osisko (see Figure 3). |
|
|
Ο |
The AntaKori project currently has an in-situ resource with 2.6
billion pounds of copper, 2.3 million ounces of gold and 61 million
ounces of silver in the indicated category, and 2.4 billion pounds
of copper, 2.2 million ounces of gold and 67 million ounces of
silver in the inferred category as per the NI 43-101 technical
report dated February 22, 2019. |
|
|
Ο |
The Mina Volare claim, where Osisko has acquired the initial
royalty, contains approximately 75% of the indicated resource
tonnes and approximately 50% of the inferred resource tonnes within
the AntaKori project based on the above-referenced NI 43-101
report. |
• |
Osisko will have a right of first refusal on all
future royalty or stream transactions in relation to claims of the
AntaKori project where Regulus has 100% ownership or any additional
claims Regulus might acquire with 100% ownership within the area of
interest described above; |
• |
Should Regulus receive a royalty or stream as
consideration for the sale of AntaKori, Osisko will have a right of
first refusal should Regulus later choose to sell that royalty or
stream; and |
• |
Regulus will issue to Osisko 5.5 million warrants
having a term of 3 years and an exercise price equal to $2.25 per
share representing a 48% premium to the volume-weighted average
price of Regulus’ shares over the 20-trading day period ending
September 30, 2020. The issuance of the warrants of Regulus is
subject to receipt of approval of the TSX Venture Exchange. |
The transaction is expected to close by the end of
October.
John Black, Chief Executive Officer of
Regulus, commented as follows: “We are pleased to
welcome Osisko as a stakeholder in the AntaKori project. Osisko has
a track record of being able to identify high quality assets, and
their investment in AntaKori provides a strong endorsement of our
vision for the future development of the project. Through this
transaction we have been able to reduce outstanding royalties on
the AntaKori project, thereby improving the overall value of the
project, while at the same time raising a significant sum of money.
Additionally, we will continue to look for opportunities to acquire
outstanding royalties with our partner. We are now fully financed
to complete our Phase II drill program which will restart shortly.
We are mobilizing rigs and expect to commence drilling in the
coming week.”
Sean
Roosen, Chair
and Chief Executive Officer
of Osisko commented as
follows: “We are excited to form this partnership with
Regulus on the AntaKori project. Through this investment we have a
unique opportunity to gain exposure to one of the largest and
highest grade undeveloped copper-gold projects in the world,
located in a premier jurisdiction, and to work with a management
team with a proven track record of delivering world class projects.
Regulus and Osisko are like-minded in the sense that we believe
true value is driven by the drill bit. This mutually-beneficial
transaction will allow Regulus the opportunity to continue its
excellent exploration work while adding value to Osisko’s royalty
investments along the way.”
The AntaKori
Project
The AntaKori Project is located in Cajamarca, Peru
in close proximity to two operating mines, the Tantahuatay Gold
mine and the Cerro Corona Gold-Copper mine. 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). The current resource estimate at AntaKori is
based on approximately 17,000 m of historical drilling and 23,000 m
of drilling completed by Regulus in its Phase I drilling program.
Regulus has completed approximately 16,368 m of a planned 25,000 m
Phase II drill program since completing the current resource
estimate. Work programs were suspended at AntaKori in early 2020
due to the Covid-19 pandemic, however Regulus is in the process of
re-starting drilling, preparing to test some of the most exciting
targets on the property, known as the Anta Norte geophysical
targets. Upon completion of the Phase II program, Regulus may elect
to complete an updated resource estimate or may move directly to a
Phase III program, based on results.
Qualified Person
The scientific and technical data contained in this
news release pertaining to the AntaKori project has been reviewed
and approved by Dr. Kevin B. Heather, Regulus’ Chief Geological
Officer, FAusIMM, who serves as Regulus’ qualified person (QP)
under the definition of National Instrument 43-101.
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
Osisko Gold Royalties
Ltd
Sandeep Singh President Phone. (514) 940-0670
Email: ssingh@osiskogr.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.
About Osisko
Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate
precious metal royalty company focused on the Americas that
commenced activities in June 2014. Osisko holds a North American
focused portfolio of over 135 royalties, streams and precious metal
offtakes. Osisko’s portfolio is anchored by its cornerstone asset,
a 5% net smelter return royalty on the Canadian Malartic mine,
which is the largest gold mine in Canada. Osisko also owns the
Cariboo gold project in Canada as well as a portfolio of publicly
held resource companies, including a 14.7% interest in Osisko
Mining Inc., 17.9% interest in Osisko Metals Incorporated and a
18.3% interest in Falco Resources Ltd.
Osisko’s head office is located at 1100 Avenue
des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B
2S2.
Neither the TSX Venture Exchange, nor its
Regulation Services Provider 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,
and the use of proceeds from the Upfront Payment 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.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/42e3ad10-b262-4174-a68a-029adfa34ad2
https://www.globenewswire.com/NewsRoom/AttachmentNg/d443ab52-63fa-4dbb-aaf7-c69aa1d6d6b2
https://www.globenewswire.com/NewsRoom/AttachmentNg/5f6b4d23-62b8-4f33-bb48-900b4b3832db
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