Regency Silver Corp. (TSX-V:RSMX, OTCQB:RSMXF) announced that it has entered into an option agreement to acquire two contiguous claim groups near the San Dimas mine in Durango, Mexico.
The gold-copper-silver exploration company said the San Dimas claims cover a total of 3,498 hectares and contain numerous artisanal workings and tunnels, with historical grab sampling returning assay values as high as 37 grams per tonne (g/t) gold and 2,325 g/t silver.
"We firmly believe that, after Dios Padre, the San Dimas district is the next large scale mining district in Mexico and Regency plans to be firmly established in the area," Regency Silver chairman Bruce Bragagnolo said in a statement.
"In addition to our ongoing programs at Dios Padre we plan to commence a mapping and sampling program on the San Dimas Claims in the near future," he added.
Regency Silver noted that in order to exercise the option, it must pay US$50,000 on receipt of Exchange acceptance, US$50,000 in six months, issue a total of one million common shares and pay back taxes and mining filings on or before March 31, 2025.
The company added that it must also pay a US$1 million bonus upon a NI 43-101 resource being published, which estimates the San Dimas Claims containing a minimum of 70 million silver equivalent ounces, or one million gold ounces in the measured or indicated categories.
Regency Silver is a Canadian resource company exploring for high grade gold, copper, and silver in Mexico. Its flagship project is the high grade Dios Padre project in Sonora Mexico, where Regency has made a large, high-grade, gold-copper-silver discovery.