Regal Resources has signed a definitive purchase agreement with Minquest based in Reno Nevada to fully acquire the Patagonia/ Sunnyside project. As per the agreement, Regal Resources will pay a total sum of $800,000 out of which $100,000 will be paid as a non-refundable deposit within three working days of signing the agreement.
The existing option agreement between both the companies over the property will be terminated once transactions under the purchase agreement are completed. This will result in the termination of existing work commitments amounting to $25,000,000 and stoppage of payment of approximately 2,000,000 shares of Regal Resources.
Minquest will have 1.5% royalty over the net Smelter Returns acquired from the property. Minquest will have an option of converting this royalty into shares of Regal Resources under certain conditions. Furthermore, Minquest will assign its rights and obligations to Brian Corn and Russell Corn through an agreement related to corn claims which are part of the property. As per the agreement Minquest will help Regal Resources in negotiating the corn claims. Regal Resources will be responsible for $100,000 of the purchase price of the corn claims. The Pantagonia/ Sunnyside Project is located in Arizona and consists of 5600 acres covering 295 claims. The project also contains areas where drilling has been completed by Anaconda, ASARCO and other companies.
Source: http://www.regalresinc.com