Regency Silver Corp. (TSX-V:RSMX) announced that it has entered into an agreement to option a 100% undivided interest in the Oso Blanco claims located in the state of Sonora in Mexico.
The Oso Blanco claims cover an area of approximately 5,650 hectares and are located contiguous to the company's flagship Dios Padre project, the explorer said.
In order to exercise the option, the company said it must pay a total sum of US$500,000 over five years, pay back taxes and mining filings currently estimated to be US$500,000 by March 31, 2023, and issue a total of 1,000,000 common shares over 36 months.
READ: Regency Silver options El Tablon claims in Durango State, Mexico
Regency Silver must also pay a US$1,000,000 bonus upon a NI 43-101 resource being published, which estimates the area of mutual interest contains a minimum of 70 million silver equivalent ounces, or 1 million gold ounces or an equivalent value in precious or base metals, in the measured or indicated categories, the company said.
The shares to be issued will be subject to a four-month hold period and the agreement is subject to the approval of the TSX Venture Exchange, it added.
Historical samplings have returned values as high as 545 grams per tonne (g/t) silver and 2.1% copper, the company said, adding that a previous trenching program returned values as high as 3.41 g/t gold and 95 g/t silver in a 2-meter trench.
Regency Silver is a silver and gold exploration company focused on the Americas. Its flagship project is the Dios Padre silver project in Sonora, Mexico.
Contact the author at jon.hopkins@proactiveinvestors.com