Regulus secures option over Gold Fields claims to expand AntaKori project

Regulus Resources Inc. said Feb. 16 that it signed an option agreement to earn up to a 60% interest in certain claims from Gold Fields Ltd.'s subsidiary Gold Fields La Cima S.A.A. that will expand its land position for the AntaKori copper-gold project in Peru.

Under the agreement, Regulus can earn 60% in the claims by incurring $3.5 million in exploration expenses over a three-year term, including at least 2,500 meters of drilling and producing a resource estimate. Upon completion, Regulus and Gold Fields will form a 60/40 joint venture.

Gold Fields will then have a 60-day window to decide whether to acquire an additional 20% interest in the joint venture, bringing its total interest to 60% and Regulus' interest to 40%, in exchange for a $7.5 million cash payment and sole funding of $5 million in exploration commitments over a five-year period.

Upon finalizing the joint venture ownership structure, both parties will be required to fund their respective portions toward future exploration activities.

Any party that dilutes below a 10% interest in the joint venture will relinquish their pro rata ownership and will maintain a 1.5% net smelter royalty interest, 0.5% of which can be bought back by the other party for $2.5 million within 60 days of announcement of commercial production on the property.