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• Regulus 100% owns the AntaKori Copper-Gold Project in northern Peru, with a high-grade, low-strip, and at-surface resource of 8.0Blbs CuEq.
• The project neighbours Coimolache’s Tantahuatay Oxide Gold Mine which REG has a collaboration agreement to assess the potential combined development of the much larger Cu-Au sulphide system lying beneath the Oxide Gold Mine and across both properties.
• The management team and board, including CEO John Black, largely come from Antares Minerals, where they discovered the sizable Haquira East Cu-Mo deposit in southern Peru, which they eventually sold to First Quantum for $650M.
Regulus Resources Ltd. (REG:TSXV, RGLSF:OTCQX) is focused on the development of its AntaKori Cu-Au Project in northern Peru. The project hosts a sizeable resource of 2.6Blbs Cu and 2.3Moz Au (M&I) and 2.4Blbs Cu and 2.2Moz Au (Inferred). AntaKori forms part of a much larger system (~30-40%) with the adjacent producing Tantahuatay Mine, operated by a JV between Southern Copper, Buenaventura, and ESPRO called Coimolache. A collaboration agreement is in place to jointly evaluate the underlying Cu-Au sulphide system with a combined resource estimate expected in Q4 and potential for a joint PEA thereafter. REG is led by a highly experienced management team that previously built Antares Minerals to its eventual sale for $650M. We are initiating coverage on Regulus Resources with a BUY rating and target price of $6.00/share.
Investment Thesis Summary
Unique Structure. REG is the 100% owner of the AntaKori Project, which is host to 30-40% of one of the largest undeveloped copper-gold systems in the world. Its neighbour, Coimolache, owns the other ~60-70% as the property boundary splits the system. On REG’s side, AntaKori is a high-grade, low strip, near-surface copper-gold brownfield project, making this project stand out amongst its peer group.
The Combination Supports a World-Class, Multi-Generational Copper-Gold Project. The combined project, TantaKori, hosts a conservatively estimated resource of 22.2Blbs CuEq (the combination of REG’s 2019 resource and Coimolache’s 2023 Investor Day resource, both sides of which have performed additional drilling since). A project like this could support a mine life of 50-80 years and would be highly attractive to the largest copper-gold producers globally.
Proven Management Team. REG’s management team, including CEO John Black, has a track record of success from Antares Minerals & Aldebaran Resources (ALDE:TSXV). The team grew Antares’ Haquira Cu-Mo Project from a $15M acquisition price to its eventual sale to First Quantum in 2010 for $650M. ALDE currently has a market cap of over $400M and is up >340% since listing in 2018.
Strong Cap Table and Structure. REG also has a stellar cap table with 21% ownership from Route One Investment Co., 16% ownership by Nuton (Rio Tinto), and the management and board holding 11%. REG has low shares outstanding for a company at this stage/size of 125.5M and a cash position of $9.3M.
Discount to Peers. REG currently trades at US$0.02/lb in the ground compared to its peers at US$0.05/lb. Upon a successful collaboration with Coimolache, we expect REG to trade at a premium to the group, given the size and quality of the asset.
REG: A Tier-1 Copper-Gold Project in the Making
What you need to know:• Regulus 100% owns the AntaKori Copper-Gold Project in northern Peru, with a high-grade, low-strip, and at-surface resource of 8.0Blbs CuEq.
• The project neighbours Coimolache’s Tantahuatay Oxide Gold Mine which REG has a collaboration agreement to assess the potential combined development of the much larger Cu-Au sulphide system lying beneath the Oxide Gold Mine and across both properties.
• The management team and board, including CEO John Black, largely come from Antares Minerals, where they discovered the sizable Haquira East Cu-Mo deposit in southern Peru, which they eventually sold to First Quantum for $650M.
Regulus Resources Ltd. (REG:TSXV, RGLSF:OTCQX) is focused on the development of its AntaKori Cu-Au Project in northern Peru. The project hosts a sizeable resource of 2.6Blbs Cu and 2.3Moz Au (M&I) and 2.4Blbs Cu and 2.2Moz Au (Inferred). AntaKori forms part of a much larger system (~30-40%) with the adjacent producing Tantahuatay Mine, operated by a JV between Southern Copper, Buenaventura, and ESPRO called Coimolache. A collaboration agreement is in place to jointly evaluate the underlying Cu-Au sulphide system with a combined resource estimate expected in Q4 and potential for a joint PEA thereafter. REG is led by a highly experienced management team that previously built Antares Minerals to its eventual sale for $650M. We are initiating coverage on Regulus Resources with a BUY rating and target price of $6.00/share.
Investment Thesis Summary
Unique Structure. REG is the 100% owner of the AntaKori Project, which is host to 30-40% of one of the largest undeveloped copper-gold systems in the world. Its neighbour, Coimolache, owns the other ~60-70% as the property boundary splits the system. On REG’s side, AntaKori is a high-grade, low strip, near-surface copper-gold brownfield project, making this project stand out amongst its peer group.
The Combination Supports a World-Class, Multi-Generational Copper-Gold Project. The combined project, TantaKori, hosts a conservatively estimated resource of 22.2Blbs CuEq (the combination of REG’s 2019 resource and Coimolache’s 2023 Investor Day resource, both sides of which have performed additional drilling since). A project like this could support a mine life of 50-80 years and would be highly attractive to the largest copper-gold producers globally.
Proven Management Team. REG’s management team, including CEO John Black, has a track record of success from Antares Minerals & Aldebaran Resources (ALDE:TSXV). The team grew Antares’ Haquira Cu-Mo Project from a $15M acquisition price to its eventual sale to First Quantum in 2010 for $650M. ALDE currently has a market cap of over $400M and is up >340% since listing in 2018.
Strong Cap Table and Structure. REG also has a stellar cap table with 21% ownership from Route One Investment Co., 16% ownership by Nuton (Rio Tinto), and the management and board holding 11%. REG has low shares outstanding for a company at this stage/size of 125.5M and a cash position of $9.3M.
Discount to Peers. REG currently trades at US$0.02/lb in the ground compared to its peers at US$0.05/lb. Upon a successful collaboration with Coimolache, we expect REG to trade at a premium to the group, given the size and quality of the asset.
Underlying
REGULUS RESOURCE
Regulus Resources is an exploration company engaged in the acquisition, exploration and development of mineral resources.
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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