Regency Silver Corp. Completes Oversubscribed IPO and Announces Upcoming Drill Program at Dios Padre
Regency Silver Corp. Completes
Oversubscribed IPO and Announces
Upcoming Drill Program at Dios Padre
VANCOUVER, BC
,
May 6, 2022
/CNW/ -
Regency Silver Corp.
(the "
Company
" or "
Regency
")
(TSXV: RSMX) is pleased to announce that it has completed its initial public offering (the "
IPO
") of
12,000,000 common shares (each a "
Share
") at a price of
$0.25
per Share for gross proceeds of
$3,000,000
. The IPO was oversubscribed with 1,019,300 Shares sold pursuant to an over-allotment
option for additional gross proceeds of
$254,825
.
The net proceeds from the IPO will be used to carry out drilling on the Company's flagship project,
the high grade Dios Padre Silver Property, located in
Sonora, Mexico
as well as option payments in
respect of the El Tule Property, for general and administrative purposes and for working capital.
The Dios Padre Property is the subject of a
November 24, 2020
, National Instrument 43-101
Technical Report titled "Geological Report and Resource Estimate, Dios Padre Property,
Municipality of
Yecora, Sonora
State,
Mexico
". The Technical Report estimates an initial inferred
resource of
9.5 million ounces of silver
equivalent
at a grade of 236 g/t (1.25 million tonnes at a
grade of 236 g/t Ag Eq). Drilling at Dios Padre has returned intercepts of
1.9
meters of
3220
g/t
silver within a broader interval of
32.5
meters of
408
g/t silver,
5.2
meters of
1145
g/t silver,
12.4
meters of
558
g/t silver and
28.8
meters of
467.8
g/t silver. The initial resource is from the area in
and around the old mine workings only and Regency will be drilling into an adjacent large IP anomaly
to test whether it represents a significant continuation of the mineralization at Dios Padre. The 10
hole,
1,700 m
drill program is scheduled to commence by the end of May, 2022. 4 shallow holes
totalling
156 m
are planned to test the up dip extension of the existing mineralization and 6 holes
totalling
1520 m
are proposed to test the prominent IP anomaly,
150 m
to
200 m
below surface
immediately north of the Dios Padre mine workings.
Regency has an option to acquire the El Tule Project which is comprised of 6 adjacent concessions
which in total cover an area of 10,286 ha in the
State of Nayarit, Mexico
. Sampling by Regency has
returned significant gold mineralization exceeding 1 ounce of gold per tonne. The style of precious
metal mineralization at
El Tule
includes structurally controlled vein systems and more extensive
subvolcanic breccias within low sulfidation systems. The El Tule Property contains extensive old mine
workings and current artisanal mining operations.
The first phase of the mapping and sampling program at
El Tule
is expected to be completed within
the next three months.
Regency wishes to thank the team at Research Capital for its efforts during the IPO process.
Regency also thanks its shareholders for their ongoing support.
About Regency Silver Corp.
Regency is focused on the acquisition, exploration and development of silver and gold projects in
Mexico
. In the immediate term Regency is focused on the drill program at its Dios Padre Property.
Regency is lead by an experienced management team with years of success in exploration and
operations in
Mexico
.
The technical information contained in this news release has been reviewed by independent
consulting geologist
Robert Lunceford
, MSc, CPG, who is recognized as a Qualified Person under
the guidelines of National Instrument 43-101. Mr. Lunceford has read and approved the contents of
this news release. Mr. Lunceford is the principal author of the Technical Report. A copy of the
Technical Report is available at the Company's website.
The Technical Report contains a resource estimate which estimates an inferred resource of
9.5
million AgEq
(silver equivalent) ounces at an average grade of
236 g/t AgEq
at a cutoff grade of
120 g/t AgEq (1.25 million tonnes at 236 g/t AgEq). The resource estimate on the Dios Padre
Property includes inferred mineral resources. An "Inferred Mineral Resource" is that part of a mineral
resource for which quantity and grade or quality are estimated on the basis of limited geological
evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade
or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. The formula for
silver equivalent used is: AgEq (g/t) = (Ag(g/t)*Ag price*Ag recovery)+ ([Au (g/t)*Au price*Au
recovery))/(Ag price*Ag recovery) based on a silver price of
US$17.00
/oz and a gold price of
US$1479
/oz, current as at 2019, July l0, and assumed metallurgical recoveries of 92% Ag and 91%
Au.
For more information, please refer to the Company's website at
www.Regency-Silver.com
.
On Behalf of the Board of Directors
Bruce Bragagnolo
Executive Chairman and Director
Phone: 1-604-417-9517
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Statements
Certain disclosure in this release, including the expected use of proceeds of the IPO, and
commencement and ending dates of drilling and work programs constitutes forward-looking
statements that are subject to numerous risks, uncertainties and other factors outside of the
Company's control that may cause future results to differ materially from those expressed or
implied in such forward-looking statements. In preparing the forward-looking statements in this
news release, the Company has applied several material assumptions, including, but not limited
to, the assumption that general economic and business conditions will not change in a materially
adverse manner; and that the Company will be able to raise additional funds on reasonable terms.
Although the management of the Company believes that the assumptions made and the
expectations represented by such statements are reasonable, there can be no assurance that any
forward-looking statement herein will prove to be accurate. Readers are cautioned not to place
undue reliance on forward-looking statements. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or for any other reason except as required by law.
SOURCE
Regency Silver Corp
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For further information:
Gijsbert Groenewegen, Chief Executive Officer, President and Director,
Phone: 1-646-247-1000
CO: Regency Silver Corp
CNW 07:30e 06-MAY-22