Reyna Silver Announces 3 Million CAD Private Placement

Rhea-AI Summary

Reyna Silver Corp. (RSNVF) has announced a non-brokered private placement offering of up to 40,000,000 units at CAD$0.075 per unit, aiming to raise gross proceeds of up to CAD$3,000,000. Each unit consists of one common share and one purchase warrant, with each warrant exercisable at CAD$0.12 per share for 36 months.

The offering is expected to close around February 14, 2025, subject to regulatory approvals. The company plans to use the proceeds for ongoing exploration, maintenance and development of properties, and general working capital. Following recent drill results at Gryphon, the financing will enable expansion of proof-of-concept targets and preparation for further exploration. The company also plans to resume exploration at Batopilas, where previous drilling yielded 9m at 616 g/t silver in 2023.

Positive

• Secured potential funding of CAD$3 million through private placement
• Previous drilling success at Batopilas with high-grade silver intercepts (9m at 616 g/t silver)
• Warrants provide additional funding potential at CAD$0.12 per share

Negative

• Significant dilution for existing shareholders with 40 million new units being issued
• Offering price of CAD$0.075 per unit indicates relatively low valuation
• Insider participation may raise conflict of interest concerns

VANCOUVER, BC AND HONG KONG / ACCESS Newswire / January 30, 2025 / Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna" or the "Company") is pleased to announce a non-brokered private placement consisting of up to 40,000,000 units (the "Units") at CAD$0.075 per Unit for gross proceeds of up to CAD$3,000,000 (the "Offering"). Each Unit will be comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share (a "Warrant Share") at an exercise price of CAD$0.12 per Warrant Share for a period of 36 months from the date of issuance.

Following our drill results at Gryphon, we are pleased to announce this financing, which will enable us to expand our proof-of-concept targets and prepare for further exploration targets later this year." said Jorge Ramiro Monroy, CEO of Reyna Silver. "Additionally, with the improved mining environment in Mexico, we look forward to resuming exploration at Batopilas, where we had several high-grade silver intercepts including drilled 9m at 616 g/t silver in 2023."

(See September 3, 2023 Press Release for more information on the drill program)

The Offering is expected to close in one or more tranches with the first closing expected to occur on or about February 14, 2025 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including fulfilling applicable requirements of the TSX Venture Exchange.

The Company may pay finders' fees and issue finder's warrants to eligible finders in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

It is anticipated that insiders of the Company may participate in the Private Placement. The participation of any insiders may be considered a related party transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Private Placement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities issued to related parties nor the consideration for such securities will exceed 25% of the Company´s market capitalization.

The Company intends to use the proceeds from the Offering for ongoing exploration, maintenance and development of the Company's properties and general working capital and corporate purposes.

Prospectus which can be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities referenced in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any applicable state securities laws and may not be offered or sold in the United States or to "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act) absent such registration or an applicable exemption from such registration requirements.

For Further Information, Please Contact:

Bethany Terracina, Vice President Investor Relations
bethany@reynasilver.com
www.reynasilver.com

About Reyna Silver Corp.

Reyna Silver is a growth-oriented junior exploration and development company. Reyna Silver focuses on exploring for high-grade, district-scale silver deposits in Mexico and the United States. In Nevada USA, Reyna Silver has entered into an option to acquire 70% of the 12,058-hectare "Gryphon Summit Project". The Gryphon Project shows features indicating uniquely superimposed/overprinted Silver-Lead-Zinc-Copper Carbonate Replacement (CRD), Carlin Gold and Critical Metals mineralization. Also in Nevada, Reyna Silver is advancing its option to acquire 100% of the "Medicine Springs Project" where Reyna Silver is exploring a potentially significant Silver-Lead-Zinc-Copper CRD-skarn-Porphyry system. Reyna Silver´s Mexican assets are 100% owned and include the "Guigui Project" and "Batopilas Project", both located in Chihuahua State. The Guigui Project covers the interpreted source area for the Santa Eulalia Carbonate Replacement Deposit District and Batopilas covers most of Mexico´s historically highest-grade silver system.

Forward-Looking Information

This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Forward-looking information herein includes, without limitation, those related to the Offering, the use of proceeds, and, more generally, the contents of the above section entitled "About Reyna Silver Corp. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected" "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could, "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the cautionary statements made in the relevant sections of the Company's filings with the Canadian Securities Authorities, copies of which can be found under the Company's profile on SEDAR+. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Cautionary Statement

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.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

SOURCE: Reyna Silver Corp.

View the original press release on ACCESS Newswire

FAQ

What are the terms of Reyna Silver's (RSNVF) January 2025 private placement?

Reyna Silver's private placement consists of 40,000,000 units at CAD$0.075 per unit, totaling CAD$3,000,000. Each unit includes one common share and one warrant exercisable at CAD$0.12 for 36 months.

When will RSNVF's private placement close?

The private placement is expected to close in one or more tranches, with the first closing anticipated around February 14, 2025.

What will RSNVF use the CAD$3 million private placement proceeds for?

The proceeds will be used for ongoing exploration, maintenance and development of company properties, general working capital, and corporate purposes.

What were RSNVF's drilling results at Batopilas in 2023?

In 2023, Reyna Silver reported high-grade silver intercepts at Batopilas, including 9 meters at 616 g/t silver.

What is the warrant exercise price and duration for RSNVF's January 2025 private placement?

The warrants have an exercise price of CAD$0.12 per share and are valid for 36 months from the date of issuance.