Regulus Resources (REG-V) Cdn$20.5 Million (US$15 Million) Strategic Investment by Rio Tinto (RIO-NY) ’s Nuton
Dec 22, '22 - NR
Regulus Resources is pleased to announce a US$15,000,000 (approx. C$20,460,153*) non-brokered private placement (the “Private Placement”), by Nuton, a Rio Tinto Venture (“Nuton”).
Highlights
Regulus is completing a Private Placement of US$15,000,000 (approx. C$20,460,153*) at a subscription price of C$1.02 per common share
Nuton will subscribe for 20,058,974 common shares (the “Nuton Subscription”)
Upon closing, Nuton will own an approximate 16.5% interest in Regulus
Regulus and Nuton will jointly undertake copper sulphide leach testing utilizing Nuton’s copper sulphide leach technologies with samples from AntaKori
The NutonTM technologies have the potential to process arsenic-bearing copper sulphides with less impact on the environment and water resources than traditional concentrator processing
The Private Placement will put Regulus in a very strong cash position
Adding Rio Tinto as a strategic partner will enhance Regulus’ ability to optimize the value of the existing resources at AntaKori and explore various options with the neighbouring Tantahuatay mine to optimize the combined Tantahuatay-AntaKori copper gold sulphide deposit (TantaKori).
John Black, Chief Executive Officer of Regulus, commented as follows:
“We are delighted to welcome Rio Tinto as a strategic investor in the Company. The investment by Rio Tinto, one of the largest miners in the world, is another strong endorsement for the AntaKori project. Through Nuton, Rio Tinto has developed sulphide leach processing technologies that could allow for the processing of high arsenic ores without the need for additional on-site treatment or paying heavy penalties to a smelter. Utilizing the Nuton sulphide leach technologies could truly be a game-changer for the AntaKori deposit. The Private Placement will significantly bolster our financial position and enhance our ability to optimize the value of the existing resources in the project area.”
Rio Tinto’s Chief Executive, Copper, Bold Baatar, commented as follows:
“This agreement will allow us to evaluate the potential to commercially deploy Rio Tinto’s innovative Nuton technologies for copper leaching at Regulus’ AntaKori project. Our Nuton technologies have the capacity to increase copper production for Rio Tinto and our partners, with a lower carbon footprint and leading environmental performance. Unlocking value from high-arsenic copper sulphides is a particularly exciting prospect for Nuton.”
In connection with the Nuton Subscription, Regulus and Nuton will enter into a collaboration agreement wherein Nuton will be granted certain investor rights, including allowing Nuton to maintain its equity interest in Regulus if it maintains said interest above 10%. Additionally, Nuton shall be allowed to nominate a director to the board of directors of the Company. The Company and Nuton have agreed to form a joint advisory committee to share expertise, exploration concepts and discuss development opportunities at AntaKori. The Company has granted exclusivity to Nuton in the area of novel, patented or trade secret leaching technologies, for a period of one year after the delivery of metallurgical samples from AntaKori to Nuton for testing. For a one-year period, Nuton has agreed to not sell any share of Regulus, acquire greater than a 19.9% interest in the Company and vote its common shares in favour of each director nominated by the Company.
Closing of the Private Placement is expected to occur in January 2023 and is subject to various conditions, including approval of the TSX Venture Exchange. No finder’s fee or commissions are payable in connection with the Private Placement.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer and its management, as well as financial statements.
Webinar
For more context, please join CEO John Black in a live event on December 22nd at 3 pm EST / 12 noon PST. Q&A will follow the presentation. Click here to register: newsletter.adnetcms.com.
Notes
* Based on CAD/USD exchange rate on December 21, 2022
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 Black
CEO and Director
Phone: +1 (604) 685-6800
Email: info@regulusresources.com
For further information, please contact:
Regulus Resources Inc.
Ben Cherrington
Phone: +1 1 347 394 2728
Email: ben.cherrington@regulusresources.com
About Regulus Resources Inc. and the AntaKori Project
Regulus 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 (independent technical report prepared by AMEC Foster Wheeler (Peru) S.A., a Wood company, titled AntaKori Project, Cajamarca Province, Peru, NI 43-101 Technical Report, dated February 22, 2019 - see news release dated March 1, 2019). Mineralization remains open in most directions. |
