Regal Resources Extends Mansa Sale Closing to Month-end

Regal Resources (CSE:RGR) has agreed to extend the deadline for closing the transaction with Mansa Equity Partners LLC until the end of August, 2015. Mansa is set to acquire a 20% equity interest in the company’s Patagonia/Sunnyside project and both companies are in constant communication to ensure the successful completion of the financing. Regal Resources reports that the delays are related to the financiers’ internal matters and are not related to the company or to the structure of the intended financing.
As quoted in the press release:

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{a ‐}feasibility study on the Project is completed. Thereafter, Mansa will have anti{a ‐}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{a ‐}back exercisable by Mansa and drag along rights exercisable by Regal in respect of Mansa’s 20% interest.

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