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Regulus Resources Signs Option Agreement with Gold Fields to Further Consolidate Land Position for the AntaKori Copper-Gold Project
VANCOUVER, British Columbia, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Regulus Resources Inc. ("Regulus" or the "Company", TSX-V: REG, OTCQX: RGLSF) is pleased to annou
About this update from Regulus Resources Inc
[{"type":"text","content":" VANCOUVER, British Columbia, Feb. 16, 2021 (GLOBE NEWSWIRE) -- 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 activitie...