Regency Silver advances on upsized financing news
Regency Silver Corp. [RSMX-TSXV, RSMXF-OTCQB] is upsizing a brokered private placement financing to $2.5 million and will use the proceeds to fund drilling on the company’s Dios Padre gold-copper-silver discovery in Sonora Mexico. The original target was $1.5 million.
Regency shares advanced on the news, rising 9.09% or $0.005 to $0.06. The shares trade in a 52-week range of 16 cents and $0.045.
Under the amended financing terms, the company will issue 50 million units priced at $0.05 per unit. Each unit will consist of one common share and one half of one share purchase warrant. Each full warrant will entitle the holder to purchase one additional share at a price of 10 cents for 24 months from the date of closing, which is expected to occur on August 22, 2025.
Regency Silver is exploring for high-grade gold, copper and silver in Mexico. The company’s flagship project is the high-grade Dios Padre project in Sonora, where the company has made a large, high-grade gold-copper-silver discovery. It appears to be a large magmatic-hydrothermal system which widens at depth, the company has said.
Drill results have included 38 metres of 7.36 g/t gold in hole REG 23-21, 36 metres of 6.48 g/t gold, 0.88% copper and 21.8 g/t silver in hold REG 22-01 and 29.4 metres of 6.32 g/t gold in hole REG 23-14.
“We are very pleased to see such strong investor demand for this offering,” said Regency CEO Bruce Bragagnolo. “The proceeds will allow us to continue unlocking the value of our exciting Dios Padre project in Mexico.” It is anticipated that certain company insiders, the lead agent and certain affiliates may acquire units in the offering in amounts up to approximately 25% of the offering.
The company said the proposed drill program is a follow-up to two successful drill programs at Dios Padre. The property is a high-sulphidation gold project and is part of the late Cretaceous to early Paleogene Laramide magmatic arc and associated porphyry copper-gold deposits that span from New Mexico southwards to Sinaloa, Mexico.
A new gold system of its style in the region, the property remains largely untested for additional gold, silver and copper-gold porphyry-style mineralization.
The Dios Padre project contains two main targets. The first is the area around the historic Dios Padre silver mine. The second is a large, induced polarization target to the north of the historic mine.
The old silver mine workings contain a NI 43-101 inferred resource of 11.4 million ounces of silver equivalent (AgEq) ounces (94% silver) at an average grade of 255.6 g/t AgEq at a cutoff grade of 120 g/t AgEq.
Regency Silver carried out a 2,000-metre post IPO drill program to test the IP target and to expand the mineralized zone outside the current Dios Padre historic resource.