Regency Silver Corp. announced the successful closing of its upsized private placement, raising a total of C$4 million. The offering involved the sale of 40,000,000 units at C$0.10 per unit, including the full exercise of an over-allotment option. Centurion One Capital Corp. acted as the lead agent and sole bookrunner for the placement.
Bruce Bragagnolo, Regency Silver’s CEO and Executive Chairman, stated the company was pleased with the oversubscribed financing. He highlighted that the proceeds would support ongoing exploration efforts at the Dios Padre project. The funds will be primarily used to expand drilling operations.
The company plans to increase its understanding of the Dios Padre project’s mineralization. Drilling is scheduled to commence in the third week of September, building upon previous positive results. A previous drill hole, REG-23-21, yielded significant results.
Each unit in the offering consisted of one common share and half a warrant. Each warrant allows the holder to purchase an additional share at C$0.20 by August 29, 2027. The net proceeds, after commissions, will fund drilling and general working capital at the Dios Padre project in Sonora, Mexico.
Regency Silver paid a C$320,000 cash commission and issued 3,200,000 broker warrants to Centurion One. These warrants are exercisable at the issue price until August 29, 2027.
Certain insiders of the company participated in the offering, acquiring 3,620,000 units. This transaction was deemed a related party transaction under Multilateral Instrument 61-101. Regency Silver utilized exemptions from formal valuation and minority shareholder approval requirements, citing that the fair market value of the units did not exceed 25% of the company’s market capitalization. The company’s board of directors unanimously approved the offering. The shorter timeframe for filing the material change report was deemed reasonable and necessary to ensure timely access to the funds for ongoing exploration.
Michael Tucker, P.Geo., a director of Regency Silver, reviewed the technical information in the release. He is considered a Qualified Person under National Instrument 43-101, although not independent due to his directorship.
The securities issued are subject to a four-month hold period, expiring on December 30, 2025. The offering is not registered under U.S. securities laws and cannot be offered or sold in the United States without registration or an exemption.
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