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Be the first with the news that moves the market- Regulus Resources (TSXV:REG) has ceased exploration at its AntaKori copper-gold property, due to the Peruvian government declaring a state of emergency
- The government has closed the border and is asking all citizens to self-isolate to stem the spread of COVID-19
- The company was in the midst of performing a Phase II drill program to outline the property’s resource
- Regulus’ senior staff will continue developing the site’s preliminary economic assessment throughout the lockdown’s duration
- Regulus Resources (REG) is down 3.33 per cent, with shares trading at C$0.53 and a market cap of $59.1 million
Regulus Resources (TSXV:REG) is the latest company to halt operations, after the Peruvian government declared a state of emergency due to COVID-19 fears.
Regulus owns the AntaKori copper-gold property in the north of Peru.
The country declared the emergency on March 15. Since then, flights in and out of the country have been cancelled, the border has been closed and all non-essential persons are in self-isolation.
The government hopes these efforts will stem the spread of COVID-19 through its population.
As a result of the lockdown, the company has been forced cease exploration operations for the 15-day period. After that period elapses, the company will re-assess resuming operations based on government guidelines.
As COVID wreaks havoc with markets, Regulus stated that its chief concern is to retain cash to maintain the AntaKori property. The company is in the midst of a Phase II drill program to assess the site’s viability.
As of March 2, the company had C$7.4 million in cash, with little overhead expenses.
While operations at the site are postponed, senior members of Regulus’s team will develop AntoKori’s preliminary economic assessment in isolation.
If the government restrictions extend pass the 15-date period, the company will consider finishing the assessment with the data it has already accumulated.
John Black, CEO of Regulus Resources, believes the previously collected data will be sufficient, if access to the site remains unlikely.
“We believe that the resource as currently defined at AntaKori would form the basis for a robust Preliminary Economic Assessment.
“We are fortunate to have strong support from our shareholders and to have completed a financing towards the end of 2019 that positions Regulus to weather the current economic environment,” he said.
Regulus Resources (REG) is down 3.33 per cent, with shares trading for $0.53 at 12:26pm EST.
