Regulus Resources Inc : The AntaKori Copper-Gold Project

Summary

Regulus Resources Inc. (TSX V.REG) is a Canadian exploration company formed in December 2010 under the directorship of the former management of Antares Minerals Inc. (TSX V.ANM): John E. Black, Dr. Kevin B. Heather and Mark Wayne. Regulus was created through the spin-out of the Rio Grande Cu-Au project in Argentina at the conclusion of the sale of Antares to First Quantum Minerals (TSX.FM, UK FQM) for approximately C$650 million, primarily for the giant Haquira Cu-Mo-Au deposit in Peru.

Regulus’ focus is on the AntaKori project in Northern Peru where it drilled continuously throughout 2018. The Phase I drilling program (20,332 m through to hole AK-18-027) was completed by October 2018 and was utilized to calculate the updated Resource Estimate reported on 1 March, 2019 (see news here). Upon conclusion of the Phase I drilling program, the Company entered directly into the Phase 2 drilling program.

Regulus also spun out its Rio Grande project, Aguas Calientes project and its other Argentina assets forming a new exploration company, Aldebaran Resources Inc. (TSX V.ALDE) in October 2018.

Stock Chart

Share Structure

Shares issued	101,844,844
Warrants outstanding	9,829,883
Options outstanding	8,100,000
Fully diluted	119,774,727
Cash – Mar 1, 2020	C$7.4 MM
Share price – June 9, 2020	C$0.89
Market capitalization	C$90 MM

Investment Highlights

Management team with history of value creation
- Predecessor company Antares Minerals was acquired for ~C$650 MM by First Quantum in 2010
Expanding interim Mineral Resource at the AntaKori Cu-Au project
- 2019 Mineral Resource Estimate saw substantial increase in known resource
AntaKori located next to two expiring mines
- Located next to two mines nearing closure and looking for new sources of ore
Well-funded with access to capital to continue exploration
- Support of strategic shareholders (Route One Investment Corp ~24%)
Rising copper market with increase in major/junior M&A activity

Project

The AntaKori Copper-Gold Project

A Tier 1 Asset In The Making

Substantial copper-gold resource already defined with significant growth potential
Brownfield project near two existing mines running out of ore
Near significant infrastructure
Conceptual pit with low strip ratio and high-grade near surface
New permit in hand to test promising targets to the north

Management Profiles

John E. Black, B.Sc., M.Sc. CEO & Director

John Black is an economic geologist with more than 30 years of exploration experience in the Americas, Central Asia, the SW Pacific, and Eastern Europe/Western Asia. He first worked in South America in 1993 and has been actively involved in mineral exploration throughout the continent for several companies since that time. His professional credentials include a B.Sc. degree in Geology from Stanford University in 1983 and an M.S. degree in Geology – Ore Deposits Exploration from the same University in 1988. John was the founding President of Antares Minerals Inc. and was instrumental in acquiring the Haquira project in Peru for Antares. He was the key driver in negotiating the sale of Antares to First Quantum Minerals for C$650 million. John’s early career included work with Bear Creek Mining Company, Kennecott Minerals Corporation, Rio Tinto and Western Mining Corporation and he currently serves as the CEO and director of Aldebaran Resources Inc..

Fernando Pickmann President, COO & Director

Mr. Pickmann has a law degree and an LLM in corporate Law and over 20 years of corporate, securities and mining law experience. His legal practice has been focused on advising significant mining companies in Peru. He has acted as internal legal advisor of Peruvian Government on the Mining Privatization Committee of Centromin Peru; he has been board member of several public and private junior mining companies and board member of Petroperu (Peruvian Agency for oil and gas) and is currently partner of Dentons law firm in the Lima office, negotiating multiple transfer, assignment and mining option contracts. Mr. Pickmann has also been a Professor of Mining Law and Strategic Alliances at Lima University. Mr. Pickmann was CEO of Southern Legacy Minerals prior to its amalgamation with Regulus. He is currently also on the Board of Aldebaran Resources Inc.

Dr. Kevin B. Heather, B.Sc. (Hons), M.Sc., Ph.D. Chief Geological Officer

Dr. Kevin B. Heather is an economic geologist with more than 35 years of field experience in North and South America. Dr. Heather was a founding member of both Antares and Regulus and directed the exploration that led to the discovery of the high-grade Haquira East deposit in Southern Peru, which sold to First Quantum Minerals in December 2010 for C$650 million. His professional credentials include a BSc. (honours) degree in Geology from UBC in 1982, a MSc. degree in Geology from Queen’s University in 1985, and a PhD. degree from the University of Keele in 2001. Dr. Heather is currently the Chief Geological Officer (CGO) for Regulus and Aldebaran and is the QP (FAUSIMM) responsible at a corporate level for overseeing the technical aspects of both company’s exploration activities. During his career Dr. Heather has been involved with several discoveries and has worked on various world-class ore deposits including the El Indio Au-Ag-Cu Mine (Chile), the Pascua-Lama Au-Ag deposit (Chile-Argentina), and the Au-Ag Cerro Vanguardia Au-Ag deposit (Patagonia, Argentina).

Mark Wayne, LL.B, CFA Chief Financial Officer & Director

Mark Wayne is a co-founder, director and the Chief Financial Officer of Regulus and, prior to that, Antares Minerals Inc. Mr. Wayne has a law degree and is a Chartered Financial Analyst. He practiced law from 1980 – 1987, specializing in the fields of corporate and securities law. In 1987 he founded and became President of AltaFund Investment Corp., a public investment company that raised $110 million. In 1991, AltaFund joined the Altamira group of mutual funds and Mr. Wayne subsequently served as Vice-President, Western Canada for Altamira until November 1998. Mr. Wayne has raised money for, and served as a director or officer of, a number of public and private companies over the years in the mining, oil and gas and technology sectors. Mr. Wayne is based in Calgary, Alberta and is also an investment advisor with IA Securities Inc., a full service investment dealer.