On October 1, 2020, Osisko Gold Royalties Ltd. (OR) and Regulus Resources Inc. (TSX-V: REG)(OTCQX:RGLSF) announced that they have entered into a strategic partnership agreement concerning the AntaKori copper project (Fig. 1), whereby Regulus will grant certain royalty and stock warrant rights to Osisko in exchange for US$12.5 million of upfront cash. The transaction is expected to close by the end of October 2020.
Fig. 1. Regulus claim map, including 100%-owned in red, Colquirrumi JV (70%-owned, in pink). Source.
Existing royalties. There are existing royalties on the AntaKori claims that are currently held by various private parties (Fig. 2). Fig. 2. NSR royalties on AntaKori concessions. Source.
Mina Volare. Regulus has acquired a 1.5% or 3% NSR on the Mina Volare claim of the AntaKori project (Fig. 2; Fig. 3) for US$750,000 from a private vendor. Osisko acquired 50% of the royalty (0.75% or 1.5%) for 75% of Regulus’ purchase price, with Osisko’s acquisition cost for the royalty included in the upfront payment. Meanwhile, Regulus has retired the remaining 0.75% or 1.5% of the royalty.
Fig. 3. Previous royalty on the Mina Volare claim. Source.
Option for future royalties. For the other claims, Osisko obtains the option to acquire 50% of the acquired royalty by paying 75% of Regulus’ purchase price for the royalty, in the event Regulus acquires any existing royalties within the current AntaKori project area or within a 1 km area of interest surrounding the project on claims owned 100% by Regulus (Fig. 1).
Osisko will have a right of first refusal (aka, RoFR) on all future royalty or stream transactions to claims of the AntaKori project where Regulus has 100% ownership or any additional claims Regulus might acquire with 100% ownership within the area of interest. Should Regulus receive a royalty or stream as consideration