Regulus Announces Filing of Prospectus Supplement
December 19 2019 - 7:00AM
Regulus Resources Inc. ("
Regulus"
or the "
Company") (
TSX.V – REG)
is pleased to announce that it has filed a prospectus supplement
(the "
Supplement") to its short form base shelf
prospectus dated December 6, 2019 (the "
Base
Prospectus") in connection with its previously-announced
$10 million financing. The Supplement was filed with the securities
regulatory authorities in each of the Provinces of British
Columbia, Alberta and Ontario. Copies of the Base Prospectus and
the Supplement are available under the Company's profile on SEDAR
at www.sedar.com.
As set forth in the Supplement, the Company has
entered into an underwriting agreement with BMO Capital Markets, as
sole underwriter (the "Underwriter"), to sell on
bought deal basis 6,368,625 units (the "Units") of
the Company, at a price of $1.06 per Unit (the "Offering
Price") for gross proceeds of approximately $6.75 million
(the "Public Offering"). Each Unit consists of one
common share ("Common Share") of Regulus and
one-half of one common share purchase warrant (each whole common
share purchase warrant, a "Warrant") of Regulus.
Each whole Warrant will entitle the holder thereof to purchase one
Common Share of the Company at a price of $1.70 per Common Share,
for a period of 24 months following the closing of the Public
Offering (the "Closing"). In addition, the Company
has granted the Underwriter an option, exercisable at any time
until two business days prior to the Closing, to purchase up to an
additional 1,415,250 Units on the same terms as the Public Offering
(the "Underwriter's Option"). If the Underwriter's
Option is exercised in full, the gross proceeds to the Company in
the Public Offering will be approximately $8.25 million.
Concurrent with the Public Offering, Regulus has
entered into subscription agreements with certain funds managed by
Route One Investment Co. LP, the Company's largest shareholder, to
purchase on a non-brokered private placement basis 3,066,375 Units
at the Offering Price, for gross proceeds of approximately $3.25
million (the "Private Placement"). The aggregate
gross proceeds of the Public Offering and the Private Placement
totals approximately $10.0 million ($11.5 million if the
Underwriter's Option is exercised in full).
The Company expects to close the Public Offering
and the Private Placement on or about December 27, 2019.
This news release shall not constitute an offer
to sell or a solicitation of any offer to buy nor shall there be
any sale of the Securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The Securities being
offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), and such securities may not be offered
or sold within the United States absent registration under the U.S.
Securities Act or an applicable exemption from the registration
requirements thereunder.
For Further Information, please
contact:
John E. Black CEO / DirectorPhone:
+1 303 618-7797 mobile
+1 720 514-9036 officeEmail:
john.black@regulusresources.com
Adam Greening Vice President, Corporate
DevelopmentPhone:+1 647 923
7799Email: adam.greening@regulusresources.com
Laura BrangwinManager, Investor RelationsPhone:
+447517313833 Email: laura.brangwin@regulusresources.com
About Regulus Resources
Inc.
Regulus Resources Inc. is an international
mineral exploration company run by an experienced technical and
management team. Regulus’ flagship property 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 (see press release
dated March 1, 2019). Mineralization remains open in most
directions and drilling is currently underway to confirm and
increase the size of the resource.
For further information on Regulus Resources
Inc., please consult our website at www.regulusresources.com.
Cautionary Note Regarding Forward
Looking Statements. This news release contains certain
forward-looking statements, including statements regarding the
Public Offering and the Private Placement, and the closings
thereof. These statements are subject to a number of risks and
uncertainties. Actual results may differ materially from results
contemplated by the forward-looking statements. Factors that could
cause actual results to differ materially from those in
forward-looking statements include: receipt of regulatory approvals
for the Public Offering and Private Placement; changes in metal
prices; changes in the availability of funding; unanticipated
changes in key management personnel and general economic
conditions. Mining is an inherently risky business. Accordingly,
the actual events may differ marginally from those projected in the
forward-looking statements. When relying on forward-looking
statements to make decisions, investors and others should carefully
consider the foregoing factors and other uncertainties and should
not place undue reliance on such forward-looking statements. The
Company does not undertake to update any forward-looking
statements, oral or written, made by itself or on its behalf.
Neither the TSX Venture Exchange, nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
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