Regency Silver Corp. (TSX-V:RSMX, OTCQB:RSMXF) said it has arranged, subject to regulatory approval, a non-brokered private placement of up to 5 million common shares at a price of C$0.40 per share for gross proceeds of C$2.0 million.
Closing of the private placement is anticipated to take place on or before Wednesday, March 29, 2023. There will be finder's fees payable in cash or securities, as permitted by the policies of the Exchange equal to 6% of the proceeds raised by the finder.
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 ongoing drilling on the flagship Dios Padre property of Regency Silver and for general working capital. The company said the 2023 ongoing drill program is progressing well with six core drill holes completed since the middle of January. Regency is currently drilling the seventh hole.
READ: Regency Silver hits continuation of sulphide bearing breccia in drilling at Dios Padre project in Mexico
The ongoing drill program is designed to follow up on discovery Hole REG 22-01, drilled in 2022, which yielded 35.8 metres (m) of 6.84 grams per ton (g/t) gold, 0.88% copper and 21.82 g/t silver.
The follow-up drill program began on January 15, 2023. The visual results of the first three holes totaling 1,974m of drilling were reported on February 23, 2023. Holes 4, 5 and 6 of the drill program are designed to find continuity of the breccia 50m to the west of Hole REG 22-01.
Highlights of the program as reported on February 23 included:
- REG-23-14 intersects 32m of pyrite-specularite-chalcopyrite supported breccia from around 454m-486m within a broader zone of disseminated and vein hosted mineralization around 25m down dip from REG-22-01.
- REG-23-15 intersects 120m of specularite-pyrite-chalcopyrite supported breccia from around 400m-520m within a broader zone of disseminated and vein hosted mineralization around 85m down-dip from REG-22-01 and around 62m down-dip from REG-23-14.
Assay results for the first three holes are expected by mid-April.
The data collection portion of the Induced Polarization (IP) program on the Dios Padre property has been completed. The results of the IP program are also expected before mid-April.
Regency Silver is a gold-copper-silver exploration company focused on the Americas. The company's flagship project is the Dios Padre gold-copper-silver project in Sonora, Mexico. Regency Silver is led by a team of experienced professionals with expertise in both exploration and production.
Contact the author at jon.hopkins@proactiveinvestors.com