Regulus Announces US$5 Million Investment from Osisko Gold Royalties, The Canadian Business Journal

VANCOUVER, BC, October 14, 2022 (GLOBE NEWSWIRE) — Regulus Resources Inc. (“Regulus”) or “Company”, TSX-V: REG, OTCQX: RGLSF) We are pleased to announce the completion of a US$5 million investment (the “Investment”) from Osisko Gold Royalties (“Osisko”). The Company’s AntaKori Project (“AntaKori”), and the right (now held by Regulus) to buy back his 1% NSR from third parties against certain claims of his AntaKori. Proceeds from the investment will be used for exploration activities at AntaKori and general corporate purposes. This investment is his second completed by his Osisko on the AntaKori project. The first is the strategic partnership between Regulus and Osisko announced on October 1, 2020 (“Strategic Partnership”).

highlight

• This investment represents a significant funding in a difficult capital market.
  • No additional royalties on claims Osisko acquired 0.75-1.5% NSR in 2020 through strategic partnerships. Most of his current NI 43-101 resources are there.
  • A transaction structured such that issued NSRs and existing unpaid royalties in connection with the investment do not exceed 1.5%.
• Bring cash to Treasury without dilution to shareholders.
• This investment will allow Regulus to continue exploring the AntaKori Project and maintain its social commitment.
• It represents a strong technical endorsement of the AntaKori project.

John Black, Chief Executive Officer of Regulus, commented:

“Osisko’s continued support is a strong endorsement of the AntaKori project. Given that the stock market is currently in a very difficult situation, the transaction will create value for shareholders by avoiding equity dilution and provide cash to Regulus to continue moving forward with its work program in Antacory. I believe we can. ”

“The next major milestone for the project is the decision on the Colquirrumi Earn-In Claim, which will allow Regulus to earn up to 70% interest from Buenaventura on completion of 7,500 m of drilling. Buenaventura has completed 7,500 m. If they do so, they will have the option of giving Regulus a 70% interest, or paying Regulus US$9 million, with Buenaventura retaining a 70% interest and giving Regulus a 30% interest. We expect to complete 7,500 m of drilling in the month and expect a decision from Buenaventura in the first quarter of 2023. Pit, thereby increasing our resource base at AntaKori.Two drilling rigs active in project As a result, we will continue drilling to expand the project’s mineralization footprint, with the goal of completing the resource refresh around mid-2023.”

Details of this transaction

Regulus, through its wholly-owned Peruvian subsidiary, has granted Osisko an NSR ranging from 0.125% to 1.5% on certain AntaKori claims. Regulus also assigns the right to repurchase 1% NSR for US$4.5 million in the claims of Maria Eugenia, Maria Eugenia No1 and Rita Margot. According to the strategic partnership, Osisko previously retained the right to acquire her 50% of her 1% NSR of Maria Eugenia, Maria Eugenia No2 and Rita Margot if Regulus exercised its repurchase right. . Pursuant to the investment agreement entered into by Osisko and Regulus, his consideration of US$5 million was paid to Regulus at closing. See Table 1 and Figure 1 for details on where the new royalties apply and the project’s overall royalty profile.

Corporate update

The Company has entered into short-term financing agreements of approximately US$500,000 with certain directors and officers. The loan is unsecured, bears interest at 10% per annum, and will be repaid by December 31, 2022, unless otherwise agreed by the parties.

As a result of insider participation in short-term loans to the Company, these loan transactions are considered related party transactions subject to the TSX Venture Exchange Regulations and Multilateral Securities 61-101. Protection of Minority Shareholders in Special Transactions (“MI61-101”). We rely on the formal valuation and waivers from minority shareholder approval requirements provided under Sections 5.5(a) and 5.7(a) of MI 61-101. Company market capitalization.

qualified person

The scientific and technical data contained in this news release related to the AntaKori project was reviewed and approved by FAusIMM’s Chief Geological Officer, Dr. Kevin B. Heather. -101.

On behalf of REGULUS RESOURCES INC.

(signature)”John Black”
John Black
Representative Director and President
Phone: +1 720-514-9036
Email: [email protected]

For more information, please contact:

Ben Cherrington
Phone: +1 1 347 394 2728
Email: [email protected]

About Regulus Resources and the Antacoli Project

Regulus is an international mineral exploration company run by an experienced technical and management team. A major project held by Regulus is the AntaKori Copper-Gold-Silver project in northern Peru. The AntaKori Project currently hosts 250 million tons of Mineral Resources of 0.48% Copper, 0.29 g/t Gold and 7.5 g Silver and 267 million tons of Inferred Mineral Resources of 0.41% Copper. 0.26 g/t Au, and 7.8 g/t Ag (independent technical report prepared by wood company AMEC Foster Wheeler (Peru) SA, AntaKori Project, Cajamarca Province, Peru, NI 43-101 Technical Report, February 22, 2019 – see news release dated March 1, 2019). Mineralization remains open in most directions.

For more information about Regulus Resources Inc., please visit our website at www.regulusresources.com.

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

Forward-Looking Information

Certain statements about Regulus, including management’s assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and are necessarily subject to known and unknown risks and uncertainties. With certainties, most of which are beyond Regulus’ control. Often, but not always, forward-looking statements or information are known as “plans,” “expects,” “does not expect,” “expects,” “budgets,” “plans,” ” presume, “predict”, “intend”, “predict”, “do not predict”, “believe” or that a particular action, event or outcome “could”, “could” A variation of a word or phrase or statement such as “could”, “could” or “will” be taken, occur or be achieved.

Specifically, without limitation, all statements contained in this press release that address activities, events or developments that occur or may occur in the future by Regulus. Statements regarding the anticipated drilling program, the completion of the updated NI 43-101 resource estimate, management’s assessment of future planning and operations, and the anticipated completion of the exploration and development program are governed by applicable securities laws. They may constitute forward-looking statements and are necessarily subject to known and unknown risks and uncertainties, most of which are beyond Regulus’ control. These risks could cause actual financial and operating results, performance, levels of activity and outcomes to differ materially from those expressed or implied by such forward-looking statements. Although Regulus believes that the expectations expressed in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove correct. The forward-looking statements contained in this press release are made as of the date hereof and Regulus may not make any forward-looking statements as a result of new information, future events or otherwise. or under no obligation to publicly update or correct the information. except as required by applicable securities laws.

Figure 1 – Claim map for AntaKori project

Table 1 – Royalty balance of AntaKori properties after investment
claim name	Third party NSR	Osico today royalty	New Osisco royalty	total royalties extraordinary
Elle Claver			1.50%	1.50%
Mina Verdesita			1.50%	1.50%
Maria Eugenia No.1*	1.375%		0.125%	1.50%
Maria Eugenia*	1.375%		0.125%	1.50%
Maria Eugenia No.2			1.50%	1.50%
napoleon	1.50%			1.50%
Rita Margot*	1.375%		0.125%	1.50%
Demacian Inquisition			1.50%	1.50%
La Inquisition			1.50%	1.50%
line incognita			1.50%	1.50%
El Cinchao			1.50%	1.50%
Shincho No. 1	2.0%			2.00%
Shincho No. 2	2.0%			2.00%
Shincho No. 3	2.0%			2.00%
Tres Mosketeros				0.00%
Valle Cincajo 2			1.50%	1.50%
Valle Cincajo 3			1.50%	1.50%
Vallecinchao 4			1.50%	1.50%
Mina Volare		0.750 – 1.50%		0.750 – 1.50%
* A repurchase right exists to purchase 1% of Third Party NSR in exchange for USD 4.5 million. This will be forwarded to Osico.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3c59af14-5833-49b3-9797-91001d2d99f2.

CBJ Newsmaker