VANCOUVER, BC, June 9, 2022
/CNW/ - Regency Silver
Corp. ("Regency Silver" or the "Company")
(TSXV: RSMX) is pleased to announce that it has entered into
an option agreement with AsiaBaseMetals Inc.
("AsiaBaseMetals") (TSXV: ABZ) to sell a 70% interest in its
wholly owned Paisano Gold Project, covering approximately 2,700
hectares in the prolific La Libertad Mining District, a district
hosting several multi-million oz precious metals deposits, in
North-Central Peru (the
"Property").
The Property is in immediate proximity to various
operating mines within a 5 km radius, including Lagunas Norte (a
former Barrick Mine) and La Arena,
a mine owned by Pan American Silver Corp. Other mines within
a 30km radius of the Property include Pan American Silver's
Shahuindo open pit mine.
Bruce Bragagnolo, Executive
Chairman stated: "We are pleased to enter into this Option with
AsiaBaseMetals Inc. which will allow us to jointly unlock the
potential of the Paisano Project. When standing on a high point of
land in this prolific mining district in Peru you can see multiple large open pit
mining projects. The proximity of the Paisano Project to such large
mines as Lagunas Norte and La
Arena is indicative of the potential of this
project."
Raj Chowdhry, AsiaBaseMetal's CEO stated: "We are excited
to enter into this Option Agreement, allowing the Company to enter
the mining sector in the South American region, and to further
develop and build our presence in the region. This will allow
us to continue to create and seize further opportunities. The
Paisano Project allows the Company immediate access to one of the
highest rated mining regions, not only in Peru but the world. I'm sure that with
the continued support of our shareholders, the Company's entry into
Peru will be rewarding. We
look forward to jointly developing the Paisano Project, in the
prolific La Libertad
District."
Property Option Terms
AsiaBaseMetals may earn a 70% interest in the Property by
making cash payments to keep the Property in good standing of
approximately US$3 per hectare over
the next three years commencing in 2023, issuing to Regency a total
of 250,000 common shares over three years; and
incurring at least CDN$1,000,000 in exploration expenditures on the
Property by expending the sum of CDN$200,000 on or before May 25, 2024, and the additional sum of
CDN$800,000 on or before May 25, 2025.
AsiaBaseMetals may elect to issue shares instead of
expending money on exploration. Such shares will be priced at the
greater of $0.17 per share or
the closing price of the Shares on the TSX Venture
Exchange, or such other exchange on which the Shares are then
principally traded, on the trading date immediately preceding the
date on which notice of such an election is delivered.
In the event the Option is exercised, the parties will
enter in a joint venture with their respective interests being 70%
AsiaBaseMetals and 30% Regency Silver.
The transaction is subject to TSX Venture Exchange
approval.
ABOUT REGENCY SILVER CORP.
Regency Silver Corp. is a silver and gold exploration
company focused on the Americas. Regency Silver is led by a team of
experienced professionals with expertise in both exploration and
production. Regency Silver's flagship project is the Dios Padre
silver project in Sonora,
Mexico.
The Dios Padre Property is the subject of a November 24, 2020, National Instrument 43-101
Technical Report. The Technical Report estimated an initial
inferred resource of 9.5 million ounces of silver
equivalent at a grade of 236 g/t. (1.25 million
tonnes at 236 g/t AgEq). Drilling at Dios Padre
has returned intercepts of up to 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 inferred resource is from
the area in and around the old mine workings only, and Regency will
be testing an adjacent large IP anomaly to determine whether it
represents a significant continuation of the mineralization at Dios
Padre. The 10 hole, 2,000 m drill
program is scheduled to commence by the end of June,
2022.
The technical information contained in this news release
has been reviewed by independent consulting geologist Gordon Gibson, B.Sc., P.Geo,
who is recognized as a Qualified Person under the guidelines
of National Instrument 43-101. Mr. Gibson has read and approved the
technical contents of this news release. Mr. Gibson is an author of
the Technical Report. A copy of the Technical Report is available
at the Company's website.
For further details about the company please visit
www.Regency-Silver.com.
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.
Cautionary Note Regarding Forward-Looking
Statements: This news release
includes certain forward-looking statements and forward-looking
information (together, "forward-looking statements"). All
statements other than statements of historical fact included in
this release, including, without limitation, statements regarding
the optioning of the Project by the Company. There can be no
assurance that such statements will prove to be accurate and actual
results and future events may vary from those anticipated in such
statements. Important risk factors that could cause actual results
to differ materially from the Company's plans or expectations
include the risk that TSX Venture Exchange acceptance of the option
agreement will not be obtained, regulatory changes, fundraising,
and risk associated with mineral exploration, including the risk
that actual results of exploration will be different from those
expected by management. The forward-looking statements in
this news release were developed based on the expectations of
management, including that Exchange acceptance for the proposed
transaction will be obtained, conditions will be satisfied,
required fundraising will be completed and the other risks
described above will not materialize. 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 otherwise, except as otherwise required by
applicable securities legislation.
SOURCE Regency Silver Corp
