Regency Silver Corp. (TSX-V:RSMX, OTCQB:RSMXF) announced that it will raise up to C$2.5 million via a non-brokered private placement to fund the next drill program at its Dios Padre gold-copper-silver project in Sonora, Mexico.
Previous drilling at the property has been promising, with one hole intersecting 54.65 meters of 5.34 grams per ton (g/t) of gold, including 7.36 g/t over 38 meters, which was recognized as a top-five drill result in Mexico for the fourth quarter of 2023 by the independent publication Gambusino Prospector.
Regency Silver’s lead geologist and director Michael Tucker said drill crew will mobilize to the site upon the 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,” Tucker said.
“We are looking forward to expanding on our exceptional results as they clearly demonstrate the potential of this system."
Bruce Bragagnolo, executive chairman and director, added: “We look forward to extending the high-grade zone along strike with strong potential for continued high-grade zones up-dip 400m toward the historic silver mine.
“The recent confirmation that Dios Padre is part of the Laramide copper porphyry belt also highlights the copper potential.”
Under the offering, Regency Silver said it would issue up to 16.6 million shares at C$0.15 per unit.
Each unit will consist of one share or one share purchase warrant entitling the holder to acquire an additional share at C$0.25 for two years.
The company can accelerate the exercise of the warrants if its shares trade at a closing price above C$0.50 for 10 consecutive trading days.