Vancouver B.C., August 10th, 2015 - Regal Resources Inc. (RGR.CSE) (the "Company" or "Regal") announces that due to unexpected delays it has agreed to extend until the end of August, 2015 the deadline for closing the transaction with Mansa Equity Partners, LLC ("Mansa"), whereby Mansa will acquire an equity interest in the Company's Patagonia/Sunnyside Project (the "Project"). Regal and Mansa are in constant communication to ensure the successful completion of the financing, and the Company reports these delays are related to the financiers' internal matters and are not related to the Company or to the structure of the intended financing.
On July 11, 2015, Regal announced that it had entered into a binding investment agreement with Mansa whereby Mansa agreed to invest US$7.5 million for a 20% direct interest in the Project. Concurrent with Mansa becoming an equity investor in the Project, Regal and Mansa will enter into a shareholders' agreement pursuant to which, among other things, Mansa's 20% interest in the Project will be a carried interest until such time as a pre‐feasibility study on the Project is completed. Thereafter, Mansa will have anti‐dilution rights entitling it to maintain its interest in the Project. Mansa and Regal will each have the right, under certain circumstances, to cause Mansa's 20% interest in the Project to be exchanged for common shares of Regal. If Regal intends to dispose of its equity interest in the Project to a non-affiliated third party, Regal will be entitled to exercise a right of first refusal. If Regal intends to dispose of its interest in the Project, there are piggy‐back exercisable by Mansa and drag along rights exercisable by Regal in respect of Mansa's 20% interest.
About Regal Resources Inc. (www.regalresinc.com):
Regal Resources Inc. is a junior mineral exploration and development company based in Vancouver, Canada. The Company is focused on the development and acquisition of copper projects in the prolific copper producing state of Arizona. The Company is currently focused on its advanced exploration copper/silver property, the Patagonia/Sunnyside project, located near Nogales, Arizona. Regal is listed on the Canadian Securities Exchange (CSE) under the symbol (RGR).
For further information please contact:
Gregory M Thomas
Drew N Brass
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "optimistic", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change.
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