Regulus Resources has secured a $5 million investment from Osisko Gold Royalties in exchange for a net smelter return ranging from 0.125% to 1.5% on certain claims of the company’s AntaKori project, as well as a right to buy back a 1% NSR from a third party on certain AntaKori claims.
“The continued support of Osisko is a strong endorsement of the AntaKori project. 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 Regulus CEO John Black.
The next major milestone for the project, according to Regulus, will be a decision on the Colquirrumi claims, in which the company can earn up a to 70% interest from Peruvian mining giant Buenaventura by completing 7,500 metres of drilling. Upon completing the 7,500 metres, Buenaventura can elect to either give Regulus a 70% interest in the claims, or pay Regulus $9 million and give up only a 30% interest in the claims, with Buenaventura retaining a 70% interest.