03:11 PM EST, 12/16/2024 (MT Newswires) -- Rugby Resources ( RBMNF ) was down 10% Monday afternoon as it terminated a previously announced private placement financing and postponed plans to drill the Cobrasco Copper Project in the coming weeks.

In a statement it said the decisions result from a change to regulations in Colombia that govern drilling activities in forest reserves. The company added it will now assess how to move the project forward under the changed rules.

In 2022, the company noted, Resolution 110 was introduced which permitted activities, including drilling, in forested areas under strict specific rules. The company said it used the provisions of that Resolution to advance drilling in areas within Cobrasco that met the defined characteristics. Rugby noted new Resolution 1705 removes the exemption and requires the completion and approval of an environmental baseline study called a Forestry Extraction.

"This regulation change is profoundly disappointing as we were in the process of funding a drilling program at Cobrasco to begin work in the coming weeks," says Bryce Roxburgh. "That program was designed to demonstrate the scale of the Cobrasco Copper Project and facilitate longer term funding for the company. In the interim, we will source funding to advance our very prospective gold and silver projects in Argentina. We have considerable experience and success in Argentina, experience that will be applied to potential discoveries at El Zanjon and Venidero."

Rugby added it will provide an update on these plans in the coming weeks.

Price: 0.05, Change: -0.01, Percent Change: -10.00