FTMIG sits down with John Black, CEO of Regulus Resources, to talk about their recently announced major partnership agreement with Osisko Gold Royalties. On October 1st, the companies announced they were entering into an agreement that will see Regulus receive an up front payment of $12.5M USD and allow Osisko the option to purchase 50% of any royalty that Regulus acquires for 75% of Regulus' purchase price. The agreement applies to all claims that are 100% owned by Regulus. An initial transaction has already occurred through the partnership, with Regulus acquiring the royalties on its Mina Volare claim and Osisko exercising it's option to purchase those royalties. The effective result is that the royalty on the Mina Volare claim has been reduced by 50% and ownership of the royalties has been transferred to Osisko.
In this interview, John outlines the key highlights of the transaction and the strategic rationale behind it, and explains why he believes it is a win-win partnership for both Regulus and Osisko. The upfront cash payment should leave Regulus fully financed for their upcoming Phase II drilling program at their AntaKori project, which is expected to begin any day now. Given that Regulus has currently outstanding warrants that are getting near to being in the money, the Osisko partnership potentially means that Regulus won't need to go back to the market to finance again if the Phase II drilling program proves successful.
Regulus Resources is a Canadian based exploration company, focused on its flagship AntaKori copper-gold project in northern Peru. It trades on the Toronto Venture Exchange under the symbol REG, on the OTCQX marketplace under the symbol RGLSF.
For more information on Regulus Resources, you can visit their website at https://www.regulusresources.com/
Link to the Regulus news release on the royalty partnership agreement:
(1:56) Getting CEO John Black's reaction to Osisko's endoresement of Regulus
(3:13) How long was the agreement in the works, and who approached who?
(4:32) Discussing the strategy and the key highlights of the deal
(9:02) Why the partnership agreement is a win-win for both parties
(13:11) What areas of the AntaKori project are covered by the agreement
(17:08) What are the impacts to the Regulus balance sheet
(21:05) Could this potentially be the last financing Regulus ever needs?
(25:27) Does the royalty agreement affect the Anta Norte target?
(28:09) Closing comments
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Originally filmed on October 8th, 2020