Reyna Silver announces $4 million bought deal
Reyna Silver Corp. [RSLV-TSXV, RSNVF-OTCQB, 4ZC-FRA] is raising $4 million from a bought deal financing with proceeds earmarked for exploration and drilling at the company’s Medicine Springs, Guigui, and Batopilas projects in Mexico.
The company said it has struck a deal with a syndicate of underwriters in connection with a bought deal private placement of 13.3 million units priced at 30 cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share for 40 cents each for 36 months following the closing date of the offering.
Closing is scheduled to occur on February 10, 2023.
On February 1, 2023, Reyna Silver shares closed at 38 cents. The shares are currently trading in a 52-week range of 80 cents and 26.5 cents.
Reyna’s principal properties are the Guigui and Batopoilas properties in Chihuahua, Mexico. Guigui covers the interpreted source area for the Santa Eulalia District and Batopilas covers most of Mexico’s historically highest-grade silver system. The company recently exercised an option to acquire a 100% interest in the Medicine Springs property in Nevada. Other assets in the portfolio include the early stage La Durazno and Matilde and La Reyna properties in Mexico.
In a January 17, 2023, press release, Reyna reported high grade silver results from the initial four-hole, 1,850-metre Phase 1.0 reconnaissance drilling program at its Medicine Springs project. This is the first time Medicine Springs has been drilled under a modern district-scale/ore-systems approach. So the company said the holes were spread widely at a number of target areas to determine broad system parameters.
Holes drilled to depth cut 400-750 metres of high potential carbonate host rocks. The company said the first hole [MS22-001] cut the best mineralization. It returned 2.4 metres (drilling thickness) of grade 1,021 g/t silver.
Hole MS22-002, drilled 1.75 kilometres in the previously undrilled Silver Butte area cut 7.4 metres (drilled thickness) averaging 186 g/t silver plus 3.7% lead and 1.0% zinc, including 4.7 metres of 274 g/t silver plus 5.6% lead and 1.5% zinc.
“Results like these from just four holes spread over 1.7 kilometres affirm that Medicine Springs has potential as a major CRD district,’’ said Reyna CEO Jorge Ramiro Monroy. “We look forward to following up on these results when we resume drilling later this year,” he said.
The Medicine Springs project is located in Elko County. The company said it exhibits many of the key features associated with large, high-grade Carbonate Replacement Deposits. When the company recently announced that it had acquired the project, it quadrupled its land holdings after recognizing a major system.
A Carbonate replacement deposit (CRD) is often comprised of base metals such as zinc, lead, and silver (plus or minus other metals such as copper). CRDs typically contain little or no gold mineralization in the system.