Regency Silver raises $4.0 million from upsized financing
Regency Silver Corp. [RSMX-TSXV, RSMXF-OTCQB] has raised gross proceeds of $4 million from an upsized brokered private placement financing consisting of 40 million units priced at 10 cents per unit. The amount raised includes the full exercise of the over-allotment option that was granted to the agents and marks an increase from an earlier target of $3.1 million.
Under the financing terms, 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 29, 2027.
Net proceeds will be used to fund drilling at the company’s Dios Padre project in Sonora, Mexico. “This new capital will allow us to continue to with our drilling in order to add shareholder value by advancing our understanding of the scale of the mineralization at Dios Padre,” said Regency Executive Chairman and CEO Bruce Bragagnolo.
“Regency is fully permitted for drilling and the drill is scheduled to arrive on site by the third week of September to drill along strike from our last drill hole, Hole REG-23-21, which assayed 38 metres of 7.36 g/t gold,” he said
Regency shares advanced on the news, rising 3.12% or $0.005 to 16.5 cents. The shares trade in a 52-week range of 32 cents and $0.09.
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, 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 hole REG 22-01 and 29.4 metres of 6.32 g/t gold in hole REG 23-14.
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.