VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2012) - Regal Resources Inc. (the "Company" or "Regal") (CNSX:RGR), is pleased to announce that it has made the final US$300,000 payment to Minquest Inc. for its acquisition (previously announced February 03, 2012 and May 16, 2012) of the Patagonia/Sunnyside Property in Arizona. Under the terms of the Purchase Agreement entered into between Regal and Minquest, in consideration for the Property Regal has paid to Minquest a total of US$800,000. The Patagonia Sunnyside Property was the subject of an option agreement between Regal and Minquest, which has been terminated upon completion of the transactions contemplated by the Purchase Agreement, thereby eliminating work commitments of more than $US25,000,000 and payments of nearly 2,000,000 shares of Regal's shares. The Purchase Agreement also provides that Minquest retain a 1.5% royalty on the Net Smelter Returns from the Property (which is a reduction from the 3% royalty reserved for Minquest under the prior option agreement) which can be converted at Minquest's election into shares of Regal in certain circumstances. Further, under the terms of the Purchase Agreement Minquest has assigned its rights and obligations under an agreement among Minquest, Russell Corn and Brian Corn pertaining to certain claims (the "Corn Claims") which form part of the Property. Minquest has also agreed to assist Regal in negotiating the purchase of the Corn Claims, for which Regal will be responsible for US$100,000 of the purchase price. If such purchase is successful within 90 days of the closing of the transactions contemplated by the Purchase Agreement, Minquest shall also receive a 1.5% royalty on the Net Smelter Returns from the Corn Claims.
The Patagonia/Sunnyside project is located near Nogales, Arizona, 45 miles (72 kilometers) south of Tucson. A Technical Report titled "Technical Report on the Sunnyside Project, Arizona, USA" and dated June 11, 2012, authored by Andrew J. Turner, B.Sc., P.Geol., a Senior Geologist employed by APEX Geoscience Ltd. of Edmonton, Alberta, has been electronically filed by Regal with regulators and is available for viewing through the Internet at the SEDAR website (www.sedar.com) under the Company's issuer profile, The Technical Report provides a summary of the recent work completed by Regal at the property, comprising historical data compilation, re-sampling and re-logging of historical drill core, new sampling of previously un-sampled drill core followed by revised data compilation with target evaluation.
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 copper producing state of Arizona. The Company is currently focused on its exploration copper/silver property, the Patagonia (Sunnyside) property, located near Nogales, Arizona. Regal Resources is listed on the Canadian National Stock Exchange (CNSX) under the symbol (RGR).
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", "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. 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, except as required by law.