Regency Silver arranging $2.5M Unit Financing to fund Dios Padre drilling, Mexico

Regency Silver Corp. [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 common share in the capital of the company and one common share purchase warrant.

Each warrant is good to buy one additional common share in the capital of the company at a price of $0.25 per share for 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 finder’s fees payable in cash or securities, as permitted by the policies of the TSXV 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.

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 stated, “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 54.65 metres of 5.34 g/t gold, including 7.36 g/t over 38 metres in a ~65-metre step-out along strike to the southeast from the discovery hole REG-22-01 which returned 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver and Hole REG-23-14 intersected 35.9 metres of 5.51 g/t gold.

Hole REG-23-21 was rated as one of the top five 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 400 metres toward the historic silver mine. The recent confirmation that Dios Padre is part of the Laramide copper porphyry belt also highlights the copper potential.”