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To: Goose94 who wrote (10921)	3/18/2016 7:57:03 AM
From: Goose94	Read Replies (1) \| Respond to of 202424

Argentina – A New Mining Finance Frontier? It is rather ironic that after over ten years of the Brazilian “ascendancy”, it should now be that Argentina looks the most promising place in Latin America and Brazil should be wracked by economic problems, corruption and protests. But ever was it thus that Argentina is under-appreciated while Brazil is always “the country of the future and always will be” as the other Latin Americans rather ironically observe. Despite Brazil’s long period “in the sun”, even a cursory visit to Argentina shows that the more southerly nation has a more dominant middle class and much better infrastructure and education, with less poverty and crime than its northern neighbor. Whatever advantages Argentina may have it always seems to let them slip every fifteen to twenty years through some lapse into populism. Another dark phase has just ended with the democratic ousting of the abysmal Cristina Kirchner late last year and in time-honoured tradition there has been a massive reaction with a swift undoing/reversal of many of the idiocies, inconsistencies, blockages and boondoggles that the rampantly corrupt former administration had implemented for its greater personal enrichment. Chief amongst the initial changes were a reversal of many barriers to imports, punitive taxes on exports and freeing up the exchange rate. Since then the government has moved on to some sort of accommodation with the “hold outs” on previous debt restructuring (some vulture funds with dubious support of the US “legal” system). Next up is unravelling the byzantine fuel subsidies and reforming the mining sector. The Ministerial Roadshow I was invited this week to an event at the Argentine embassy in London that was essentially a “meet the ministers” opportunity. The speakers were Miguel Braun, Trade Secretary and Lucio Castro, Secretary of Productive Transformation. Prominent in their speeches was the issue of prioritizing mining in Argentina. Even in the days of Menem (who reformed the mining code and decentralized decision making) or Cristina Fernandez de Kirchner (who was pro-mining as long as it danced to the many conflicting tunes that the government was playing) there was little overt prioritization of mining because, for the urban masses of Argentina, mining was an obscure thing not branded on to the national consciousness like it is in Australia, Canada or South Africa. Much of this lack of perception of the sector and its potential originates in the virtual absence of mining between 1947 and the late 1990s. In any case it is now seen as one of the productive (and export-earning) pillars of the new regime. Your intrepid correspondent was itching to ask a question by the time the Q&A came around. The trade attaché had arranged for me to go up afterwards and talk about mining but I could not resist the temptation, given that nothing had been said about the Argentine stock market, to mention the subject in front of the audience. I firstly dropped the statistic that listings had gone from over 600 in the 1970s to less than 100 these days and that volumes had shriveled under the dual assault of the hostile government of the undearly departed CFK regime and the on-going mediocrity of the cabal of stockbrokers that have had their death like grip on Argentine equity markets for well past their “use-by” date. This came totally out of left field and left the ministers floundering but hopefully it has added capital market reform onto the agenda as well. Clearly though they knew the dire statistics on the shrunken number of listings (most in the economic cabal in Argentina do not) and I think the issue resonated as a “must remember to address this” mental note for future action. The Holy Grail of Mining Listings There was method to my questioning. There has not been a listed miner on the Argentine stock exchange since before the Second World War. It’s now nearly twenty years since, when living and operating as a stockbroker in Buenos Aires, I tried to convince the late, lamented Minera Andes to list itself on the Argentine stock exchange and diversify its investor base to include emerging market players rather than just mining investors. Since that time, the only development that has managed to tempt anglophone mining managements out of their comfort zone was the launch of the Lima Venture Exchange, which is an offshoot of Peru’s principal trading platform the Lima Bolsa. The Lima Venture appears to have gone somewhat by the wayside and been merged into the main listings of miners. This would make sense as some of the companies listed are veteran producers rather than “venture” in any way. Southern Copper is an NYSE-listed company that is enormous. Our thesis is that all Latin markets represent an untapped source of funds from smaller savers and wealthy investors as well as institutions and other portfolio investors. In particular Argentines are well-padded with funds and hold minimal levels of personal debt (most properties are owned outright and mortgages are a rarity). This means there is a large amount of funding that is available for mobilization. Before the change of government it would have been a waste of time to consider activating this. Indeed it would have bordered on the irresponsible to urge investors into any listed situation there. But today the situation has diametrically changed. Miners should be at the forefront of capitalizing on this. Some Names to Conjure With The table below shows the main players with an Argentine presence. There are undoubtedly others who are “hiding their light under a bushel” and shall start bragging about hidden assets when the country becomes fashionable again. But for now this is quite an impressive list and represents the type of players that have made Argentina the second largest gold producer in the continent. Looking at this list, at least half are in the range of companies that could do with more financing to move their projects forward, while almost all could package up whatever they have and list the local subsidiaries on the Buenos Aires to make them self-funding or to raise funds for development elsewhere. Many of the projects in the hands of majors are somewhat long in the tooth. A good example is Alumbrera which is nearing its end of mine-life and could not really be sold even if they wanted to. This is not just a list of foreign miners, this is a list of ALL miners because, believe it or not, Argentina does not have any Argentine-owned mines of note. This goes some way to explain why the sector has not had any of the local economy heavyweights going into to bat for the activity as they have had no skin in the game. Certainly listing miners on the local exchange and getting investors literally and figuratively “invested” in the industry would make the activity something more present for those denizens of the Buenos Aires banking district and middle class investors. Conclusion Metals prices are in recovery mode and we suspect that, in particular, Canadian miners will find that Toronto/Vancouver are still shallow ponds and then the attractions of secondary listings (or shifting main listings) in London, Latin America or even Frankfurt will start to exert a siren call upon miners looking to escape the cycle of financing misery they have been in since 2011. Capital markets are all about “follow the money” and if the money is not in Vancouver for one’s venture then what is one supposed to do? Sit in the office withering away waiting for a situation which may never turn.. to turn? If the money is in Latin America and most particularly in the pockets of local high net worths and the middle class then why would one not go there to seek it out? The argument that one cannot do it as one would have to translate annual reports or press releases into Spanish (or Portuguese) is a rather feeble one. Frankly if you can operate a mine in the country but you cannot translate a report or release then maybe you are not competent enough to be operating in that market. Managements need to wise up. The Toronto and Vancouver mining worlds are only slightly less crowded than they were at their peak, but they are considerably more capital hungry and the investors are a quantum wiser as to what projects (and managements) they will back or not back. With the best will in the world there will NOT be the funds for the types of projects that were funded either pre-2008 or in the Dead-Cat Bounce years of 2009-2011. There will be some funds but these will be rationed and probably go to the companies that need the money the least or those that could borrow the money if they wanted. Those that are most needy and least creditworthy will be locked out. It’s raining pennies from heaven for Argentine miners at the current time and the smart will turn their umbrellas upside down to catch some of them while the shower lasts.

To: Goose94 who wrote (10921)

5/18/2016 6:08:42 PM

From: Goose94

Read Replies (3) | Respond to of 202424

Regulus Resources (REG-V) May 18, '16 is pleased to announce that its wholly owned Peruvian subsidiary, Southern Legacy Peru S.A.C. ("SLP-Regulus"), has entered into binding Memorandum of Understanding ("MOU") agreements with Compañía Minera Coimolache S.A. ("Coimolache") and Compañía Minera Colquirrumi S.A. ("Colquirrumi"), companies that hold mineral concessions immediately adjacent to, and inter-fingering with, the SLP-Regulus AntaKori copper-gold project in northern Peru. These agreements will allow for mutual access, mutual rights of expansion and collaborative exploration of the project area, providing benefit to all three parties.

John Black, Chief Executive Officer of Regulus, commented as follows:

"When we acquired the AntaKori copper-gold project by means of the amalgamation with Southern Legacy Peru, we knew we were on to an exceptionally good opportunity to define a major new copper-gold discovery. However, we were faced with a significant challenge due to the fragmented pattern of mining concession ownership. We are very excited that these agreements will now set the stage for collaborative exploration for the first time in the long history of the project area. All three parties will remain autonomous but will be able to work together to better determine the full extent and economic importance of copper-gold mineralization that is already extensive but has been only partially defined to date. Over the next several weeks our technical and community relations teams will be sitting down with their counterparts from Coimolache and Colquirrumi to develop exploration plans for the upcoming field season. A significant benefit of the agreements is that we will be able to present a more comprehensive and complete project plan to the local communities and very likely advance the exploration activities more quickly, with drilling likely to commence before the end of this year."

Coimolache MOU Agreement

Compañía Minera Coimolache S.A. ("Coimolache") is a mining company that owns and operates the Tantahuatay gold-silver mine immediately adjacent to the southern margin of the SLP-Regulus AntaKori project (Figure 1). The principal shareholders of Coimolache are Compañía de Minas Buenaventura S.A.A. ("Buenaventura" - 40% and operator) and Southern Peru Copper S.A.A. ("SPC" - 44%). The Coimolache MOU agreement allows for mutual access, mutual rights of expansion and collaborative exploration with a principal objective of determining the size and nature of the AntaKori copper-gold deposit and a secondary objective of allowing the expansion of Coimolache's Tantahuatay mine by way of lay-back onto SLP-Regulus mining concessions. The MOU is binding and the parties will use best efforts to enter into a Definitive Agreement ("DA") prior to December 31, 2016. The key components of the agreement are as follows:

The creation of an Area of Interest ("AOI") consisting of mining rights from both companies centered on the known AntaKori copper-gold sulphide mineralization (Figure 1).

Each company retains its current mining rights.

Collaborative exploration within the AOI, overseen by a joint technical committee and with each party assuming costs for work done on its own mining rights.

Both parties have access to all exploration data generated by either party within the AOI.

Both parties have access to all surface rights owned or controlled by either party.

Either party may elect to proceed with exploration activity on its own mining concessions, at its sole cost, in the event that the other party elects to not complete exploration activity at that time.

For the purposes of permitting and management of exploration and development activities, the AOI will be divided into two sub-areas:
Sub-area 1 will consist of all Comolaiche mining concessions within the AOI and seven SLP-Regulus mining concessions that are closest to Coimolache's active Tantahuatay Mine (Figure 1).

Exploration within sub-area 1 will be managed by Coimolache and will utilize existing and future Coimolache exploration and mining permits.

Coimolache may extend the current Tantahuatay oxide precious metals mining operation onto the assigned SLP-Regulus mining concessions for the purpose of exploiting oxide precious metals mineralization by meeting the following requirements:

Presentation of an approved mine plan to SLP-Regulus;

Assuming all development and operating costs;

Assuming all responsibility for permitting costs and procedures;

Payment of a 5% Net Smelter Return royalty ("NSR") to SLP-Regulus for any mineralization processed from the SLP-Regulus mining concessions; and

Assuming all responsibility for environmental and mine closure costs.

SLP-Regulus will assign the seven mining concessions to Coimolache for the purposes of exploration and the development and mining of near-surface oxide precious metals mineralization.
Sub-area 2 will consist of the remaining 11 SLP-Regulus mining concessions that are located farther from the Tantahuatay Mine (Figure 1). Exploration in sub-area 2 will be managed by SLP-Regulus.

Within the first five years from the execution of the DA, either party may elect to become the Developing Party ("DP") and thereby have the right to develop and mine sulphide mineralization within the AOI by meeting the following requirements:

Presenting a mining plan, scoping study, preliminary economic assessment ("PEA") or similar development plan;

Presenting a Preliminary Feasibility Study ("PFS") within two years of presenting a scoping study or PEA;

Presenting a Final Feasibility Study ("FFS") within three years of presenting a PFS;

Starting construction within 3 years of presenting the FFS;

Assuming all development and operating costs;

Assuming all responsibility for permitting costs and procedures;

Sockpiling mined material, if requested by the other Party, that is moved from the other Party's mining concessions within the AOI;

Paying a 5% NSR to the other Party for mineralization processed from the other Party's mining concessions within the AOI; and

Assuming all responsibility for environmental and closure costs.

In the event that SLP-Regulus elects to become the DP, Coimolache will have a period of 360 calendar days to choose one of the following options:

Allow SLP-Regulus to become the DP;

Elect to become the DP;

Elect to proceed jointly with SLP to complete a Preliminary Feasibility Study and Final Feasibility Study on the timeline indicated above for the DP; or

Terminate the Definitive Agreement.

The MOU will remain valid until the earlier of the execution of the Definitive Agreement or December 31st, 2016.

Colquirrumi MOU Agreement

Compañía Minera Colquirrumi S.A. ("Colquirrumi") is a wholly owned subsidiary of Buenaventura. The Colquirrumi MOU agreement allows SLP-Regulus an option to earn-in to up to a 70% interest in a large area of Colquirrumi mining concessions located immediately to the north and east of the SLP-Regulus AntaKori mining concessions (Figure 2) and also providing Colquirrumi with an option to claw-back to a 70% interest by making a cash payment to SLP-Regulus. The MOU is binding and the parties will use best efforts to enter into a Definitive Agreement prior to December 31, 2016. The key components of the agreement are as follows:

An AOI consisting of a large area of Colquirrumi mining concessions located to the north and east of the SLP-Regulus AntaKori mining concessions (Figure 2).

Colquirrumi will assign the mining concessions in the AOI to Newco, a special purpose company to be initially owned 100% by SLP-Regulus for the purpose of exploration.

Newco will have an option to acquire a 100% interest in the AOI by completing a minimum of 7,500 m of drilling within a three year time period that commences upon receipt of all required drilling permits.

In exchange for the 100% interest in the AOI, Colquirrumi will receive a 30% interest in Newco.

Commencing from the date that Newco notifies Colquirrumi that it elects to exercise its option to acquire the 100% interest in the AOI (and therefore grant Colquirrumi a 30% interest in Newco), Colquirrumi will have a period of 60 days to elect to claw-back to a 70% interest in Newco by making a US$9,000,000 payment to SLP-Regulus.

If Colquirrumi does not exercise its claw-back option, it will remain with a 30% interest in Newco.

Upon final resolution of the earn-in and claw-back options, all future expenditures and investments made by Newco will be proportional to each Party's percentage ownership in Newco with standard dilution in the event that a Party chooses not to participate.

If either party has its participation in Newco diluted to less than 10%, the Party's participation will be converted to a 1.5% NSR.

The Parties also agree that either SLP-Regulus or Coimolache may elect to develop and mine sulphide mineralization within the AOI as an extension of activity on their adjacent mining concessions by meeting the following obligations:

Presenting a mining plan, scoping study or preliminary economic assessment (PEA) or similar development plan;

Presenting a Preliminary Feasibility Study (PFS) within two years of presenting a scoping study or PEA;

Presenting a Final Feasibility Study (FFS) within three years of presenting a PFS;

Starting construction within 3 years of presenting the FFS;

Assuming all development and operating costs;

Assuming all responsibility for permitting costs and procedures;

Stockpiling mined material, if requested by Newco, that is moved from Newco's mining concessions within the AOI;

Paying a 5% NSR to Newco for mineralization processed from Newco's mining concessions within the AOI; and

Assuming all responsibility for environmental and closure costs.

The Parties also agree that Coimolache may extend its current Tantahuatay oxide precious metals operations into the following Colquirrumi mining concessions in the AOI (Proveedora No 2-E, Proveedora No 2-F, Tantahuatay No 20-A3, Tantahuatay No 20 and Futuro No 3) by meeting the obligations listed below:

Presentation of a approved mining plan to Newco, SLP-Regulus and Colquirrumi;

Assuming all development and operating costs;

Assuming all responsibility for permitting costs and procedures;

Assuming all responsibility for environmental and mine closure costs;

Coimolache would be restricted to mining material that falls within the approved mine plan presented to Newco, SLP-Regulus and Colquirrumi;

No NSR royalty will be required for this activity;

Newco, SLP-Regulus and Colquirrumi will facilitate the assignment of the mining concessions to Coimolache for extension of mining as per the approved mine plan; and

Once the mining of oxide mineralization is terminated, or at the conclusion of a period of five years from the granting of the right of expansion, whichever is the earlier date, the lease of the mining concessions will be terminated unless the parties agree otherwise.

AntaKori Project

The flagship project for SLP-Regulus is the AntaKori Cu-Au-Ag project in northern Peru. This project has a 43-101 inferred resource of 294 million tonnes grading 0.48% Cu and 0.36 g/t Au (please refer to Southern Legacy news release of July 3, 2012). The resource is based on only 17,000 m of drilling, is only reported for the portion of the mineralized system that is owned or controlled by SLP-Regulus, and is open for expansion in several directions.

Table 1. AntaKori Cu-Au-Ag Project

Summary of 43-101 Resources

Resource Type	Inferred Category
	Tonnes	Au	Cu	Ag	Au	Cu	Ag
	(millions)	(g/t)	(%)	(g/t)	(M ozs)	(B lbs)	(M ozs)
In-Pit	125.4	0.25	0.28	6.6	1.0	0.8	26.6
Underground	169.4	0.44	0.63	12.8	2.4	2.4	69.6
Total	294.8	0.36	0.48	10.2	3.4	3.1	93.3

Notes:	i) Estimates were calculated using Inverse Distance Squared method
	ii) Estimates were calculated within a Whittle Pit and limited to Southern Legacy Peru's property mineral tenure
	iii) In-pit cut-off grade of 0.2% Cu equivalent
	iv) Underground resources assume Block Caving at 0.5% Cu equivalent cut-off
	v) Metal prices utilized for estimate were US$1,500/oz Au, US$25/oz Ag and US$3.50/lb Cu

The AntaKori project is located 60 km north of the city of Cajamarca in the Hualgayoc District, northern Peru. The project is located in a world-class Au-Cu province which hosts a number of nearby deposits:

Immediately adjacent to the producing Tantahuatay Gold Mine (Buenaventura-Southern Copper);

7 km to the NW of the Cerro Corona Gold-Copper Mine (Goldfields);

35 km to the NW of the Yanacocha Gold Mine (Newmont-Buenaventura);

40 km to the SE of the La Granja Porphyry Copper deposit (Rio Tinto); and

50 km to the NW of the Michiquillay Porphyry Copper deposit (Peruvian Government).

Highlights of the AntaKori project include the following:

SLP-Regulus owns or controls 20 mineral concessions, totalling 289 hectares, which cover most, but not all of the currently known AntaKori mineralized system. Further consolidation of mineral tenure is in process.

A total of 17,952 m of drilling has been completed in 70 drill holes (22 RCDH and 48 DDH).

Several of the more significant drill intercepts reported to date include:

DDH-37 202.1 m with 1.00 g/t Au and 1.89% Cu;

DDH-44 103.2 m with 1.03 g/t Au and 1.38% Cu from surface; and

DDH-50 84 m with 1.11 g/t Au and 1.47% Cu.

Note - Reported intersections are drilled intersections, additional drilling will be required to determine true widths of mineralization.

An Independent 43-101 report has documented a large telescoped Au-Cu porphyry system with associated, mineralized breccias, skarns, and porphyry-style mineralization hosted in sedimentary and intrusive rocks, and associated epithermal, high-sulphidation mineralization in the overlying volcanic rocks.

Zones of mineralization have been intercepted by the previous drilling within large geophysical anomalies, thus confirming the utility of the geophysics used in identifying future exploration targets.

Indication that the mineralized system is open in all directions, and has potential for expansion through future exploration programs.

Qualified Persons

The scientific and technical data contained in this news release pertaining to the AntaKori project has been reviewed and approved by John E. Black, Regulus' CEO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

About Regulus Resources Inc.

Regulus Resources Inc. is an international mineral exploration company run by an experienced technical and management team, with a portfolio of precious and base metal exploration properties located in North and South America. For further information on Regulus Resources Inc., please consult our website at www.regulusresources.com.

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.

To view the images associated with this press release, please visit the following link:

http://www.marketwire.com/library/20160518-NR%20FIG_1.jpg

http://www.marketwire.com/library/20160518-NR%20FIG%202.jpg

Regulus Resources Inc.
John E. Black
CEO / Director
+1 720 514-9036
john.black@regulusresources.com
www.regulusresources.com