Regulus Resources inc

Regulus Resources inc. Ticker REG.V (SP C$0,97) (Mcap C$98m)
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Summary
Regulus is dominantly a Copper project but with very significant Gold and Silver
byproducts.
• Regulus owns the AntaKori copper-gold-Silver project in Peru (Peru is the copper
hot spot right after Chile)
• The AntaKori project currently has a resource with 2.6 Blb Cu, 2.3 Moz Au, and 61
Moz Ag in the indicated category, and 2.4 Blb Cu, 2.2 Moz Au, and 67 Moz Ag in
the inferred category. (see picture last pages) In Total 5Blb Cu, 4.5Moz Au,
128Moz Ag – 500Moz ton of mineralization
• The project is adjacent Tantahuatay and Cerro Corona
• Osisko Gold Royalties ($2.58B Mcap) is a shareholder in the company and an
active strategic partner in the company (see picture)
• C$4.5m in cash (+C$16.6M)
• Osisko Gold Royalty paid US$12.5 million (C$ 16.6 million) to Regulus - Company
fully financed for Phase II drill program.
• Management and Directors have invested > C$2.6 MM in Regulus shares since
January 2018, Management interests fully aligned with shareholders (They are
currently buying common shares in the public market, see picture)
• Currently being traded “way” under warrants price
• Presse release from January 7 - Results from 2 holes on the Colquirrumi ground
confirmed mineralized step out holes (370m) big jump to the north. REG has an
agreement to earn 70% on Colquirrumi ground, to earn that they have to drill
7500m. which they then can sell for $9Moz to Buenaventura. They have completed
3600m (50%) on Colquirrumi so far (See picture)
• Antekori has long runs high grade mineralization in their drilling results with length
around 600m starting at surface. (see picture)
• Watch the latest interview with CEO uploaded January 15
https://www.youtube.com/watch?v=NV2zp7uVS3E&ab_channel=FTMINVEST
Introduction

Regulus Resources owns the massive AntaKori copper-gold project, which currently holds
large amount of Cu, Ag and Au. The strategy of the company is finding under-explored
assets that have the potential to become large deposits, drill them out and de-risking them
and then selling them. The management team behind Regulus has experience with this
strategy -They were previously in charge of Peru-focused copper exploration company
Antares Minerals, which was sold to First Quantum (First Quantum Minerals Ltd.
Ticker: FM.TO)
for around C$650 million in cash and shares back in 2010.
The company is in the middle of a new 25,000-meter drilling campaign and it plans to
release a PEA study after the phase II drilling in 2021.
Risk
The arsenic content has caused some obstacles in a part of the project- Temporarily drill
suspension because of community agreement/talks – seemingly these things happens in
developing countries where the community want a piece of the cake (money) - CEO is
confident that things will turn out good (see Youtube interview Jan 7) – Another Sign of
confidence from the management is the insider buys lately (see CEO.CA) drilling should
start very soon. The risk reflects in the cheap share price! The track record of Regulus
management team and the strategic partnership with Osisko Gold Royalties made me trust
in them and I bought shares!
”The principal issue that has been brought to the Company’s attention is that waters in
the nearby Aguas Coloradas Reservoir (Coloured Waters Reservoir) have become
turbid and changed color and there are allegations that drilling activity at Anta Norte
may have contributed to this. Regulus can confidently state that the drilling at Anta
Norte has had no effect on the Aguas Coloradas Reservoir, as this body of water is
located well to the east of where the drilling is occurring and is at a higher elevation and
in a completely different drainage basin. The Company has offered to help fund a study
and to work with the local community of Tranca de Pujupe to evaluate the potential
source of the discolouration”.
Conclusion
Regulus is led by a solid management team that successfully managed to monetize
the Haquira project in 2010 (see last page). The latter bears similarity to AntaKori as it is
also located adjacent to a large operating copper-gold mine, namely Las Bambas.
AntaKori already is very large and it has an amazing exploration potential, I think that
AntaKori could start attracting significant interest from mining majors around the middle of
2021 after the release of the PEA. The main listing of the company is in Canada and the
current market capitalization is just C$98 million, which seems very cheap for a company
with a Tier 1 copper-gold project. Regarding likely bidders, I think that a lot of synergies
could be realized through the combination of AntaKori with Tantahuatay or Cerro Corona,
but the project also could attract attention from other major mining companies. For
example, some gold majors have been looking at diversifying into copper lately and
AntaKori could be a great fit for them - I see huge short term and long term upside here!

Links
Interview YouTube January 7:
https://www.youtube.com/watch?v=ynLHcxtrToU&ab_channel=ResourceStockDigest
Interview YouTube January 15
https://www.youtube.com/watch?v=NV2zp7uVS3E&ab_channel=FTMINVEST
Link to Homepage:
https://www.regulusresources.com