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