Drill program to commence immediately after completion of financing
VANCOUVER, BC / ACCESSWIRE / July 19, 2024 / Regency Silver Corp. ("Regency Silver" or the "Company"), (TSXV:RSMX)(OTCQB:RSMXF) is pleased to announce that it has arranged, subject to regulatory approval, a non-brokered private placement of up to 16.6 Million Units at a price of CAD$0.15 per Unit for gross proceeds of up to CAD$2.5 Million. Each Unit will consist of one (1) common share in the capital of the Company and one (1) common share purchase warrant ("Warrant"). Each Warrant shall entitle the holder to acquire one additional common share in the capital of the Company at a price of $0.25 per share for a period of two years following the date of issuance. The Warrants will be subject to the right of the Company to accelerate their exercise if the shares of the Company trade at a closing price above $0.50 for 10 consecutive trading days.
There are finders fees payable in cash or securities, as permitted by the policies of the Exchange equal to 6% cash and 6% broker warrants of the proceeds raised by the finder. Closing of the private placement is anticipated to take place shortly.
All common shares issued under the private placement will be subject to a four month hold period, in accordance with applicable Canadian securities laws. The proceeds will be used for the upcoming drill program on the Company's Dios Padre project in Sonora, Mexico and general working capital.
Michael Tucker, lead geologist and director states, "We are excited to continue drilling at Dios Padre. The drill crew will mobilize upon closing of the financing. Drill results to date continue to demonstrate what looks to be a high grade, high-sulphidation, gold-copper-silver system proximal to a porphyry source. We are looking forward to expanding on our exceptional results as they clearly demonstrate the potential of this system."
Previously drilled Hole REG-23-21 intersected 54.65m of 5.34 g/t gold including 7.36 g/t over 38m in a ~65 m step-out along strike to the southeast from the discovery hole REG-22-01 which returned 35.8m of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver and Hole REG-23-14 intersected 35.9m of 5.51 g/t Au.
Hole REG-23-21 was rated as one of the top 5 drill results in Mexico in Q4 2023 by the independent Mexican publication, Gambusino Prospector.
The recently discovered breccia Au-Cu zones are part of a long lived, multi-phase magmatic hydrothermal Au-Cu-Ag event in the district. Recent geochronology results of the Cu-Au mineralized K-spar megacrystic Quartz Feldspar Porphyry (QFP) confirm that this system is part of the late Cretaceous to early Paleogene Laramide magmatic arc and associated porphyry Cu-Au deposits that span from New Mexico southwards into Sinaloa, Mexico (e.g. Buenavista del Cobre, La Caridad).
The presence of a Laramide age Cu-Au porphyry system is new to the Dios Padre region of Sonora and has property-scale, as well as regional-scale implications on the prospectivity of the district. Dios Padre has all the indications of the presence of a significant hydrothermal system including widespread alunite-sericite alteration, extensive specularite-pyrite halos around Au-Cu mineralization, large, well-developed, multi-phase breccias as well as Cu-Au mineralized porphyritic intrusive rocks.
Bruce Bragagnolo, Executive Chairman and Director states, "The gold breccia is a large, high grade gold zone. We look forward to extending the high-grade zone along strike with strong potential for continued high grade zones up-dip 400m toward the historic silver mine. The recent confirmation that Dios Padre is part of the Laramide copper porphyry belt also highlights the copper potential."
QA/QC
For further details about drill results and QA/QC procedures please refer to the Company's news releases dated October 11, 2022, and April 24 and November 2, 2023.
Technical Information
The technical information contained in this news release has been reviewed by Company director Michael Tucker, P.Geo, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101. Mr. Tucker is a director of the Company and for that reason is not considered independent. Mr. Tucker has read and approved the technical contents of this news release.
ABOUT REGENCY SILVER CORP.
Regency Silver is a gold-copper-silver exploration company focused on the Americas. Regency Silver is led by a team of experienced professionals with expertise in both exploration and production. Regency Silver's flagship project is the Dios Padre gold-copper-silver project in Sonora, Mexico.
Cautionary Note Regarding Forward-Looking Statements: This news release includes certain forward-looking statements and forward-looking information (together, "forward-looking statements"). All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the optioning of the Project by the Company. There can be no assurance that such statements will prove to be accurate and actual results and future events may vary from those anticipated in such statements. Important risk factors that could cause actual results to differ materially from the Company's plans or expectations include the risk that regulatory changes, fundraising, and risk associated with mineral exploration, including the risk that actual results of exploration will be different from those expected by management. The forward-looking statements in this news release were developed based on the expectations of management, including that Exchange acceptance for the proposed transaction will be obtained, conditions will be satisfied, required fundraising will be completed and the other risks described above will not materialize. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
