Regency Silver Corp Acquires Past Producing Jabali Gold Project in Sonora, Mexico - Adjacent to Alamos Gold's Mulatos Mine
Regency’s Jabali acquisition adds a past-producing asset while diluting equity at multi-month lows.
Regency Silver Corp. has entered a binding agreement to acquire 100% of the Jabali Gold Project, which contains the historic La Dura mine in Sonora, Mexico, by purchasing all shares of Tarachi Gold S.A. de C.V. The property spans 569 hectares in the Mulatos Mining District, located 6 km west of Alamos Gold’s Mulatos mine and 20 km northeast of Regency’s Dios Padre project.
The transaction consideration includes an initial $70,000 cash payment, the issuance of 20,000,000 shares subject to a voluntary pooling agreement, up to $4,000,000 in contingent cash payments tied to production milestones, and a 2% Net Smelter Return (NSR) retained by vendors.
Historical drilling at Jabali shows high-grade intersections, including: * 63.4m at 6.91 g/t Au * 12m at 7.26 g/t Au
Metallurgical testing indicates 94.8% gold recovery via cyanide leaching. Regency plans to restart production using a toll milling arrangement with a nearby mine and is currently completing a NI 43-101 technical report. Closing is expected around September 30, 2026, pending TSXV approval.
Regency Silver Corp. (RSMX) has acquired a past-producing asset, marking a strategic shift from its exploration-stage Dios Padre flagship toward an operation with a clear path to near-term cash flow through toll milling. The transaction is structured primarily with equity, involving 20 million shares valued at approximately $2.0 million based on a current share price of $0.10. The deal also includes $4 million in contingent payments and a 2% net smelter return (NSR), creating potential for significant future dilution and cash outflows.
This acquisition represents an expected, incremental step in management’s strategy to consolidate the Sonora district footprint. While the move provides long-term optionality, it does not immediately alter the company’s financial position or prove a defined resource. The market has already priced in the exploration progress at Dios Padre, and the transaction does not override ongoing dilution risks or the lack of immediate production.
Regency Silver Corp. (RSMX) is a Canadian junior exploration company focused on high-grade gold, silver, and copper projects in Sonora, Mexico. Its flagship asset is the Dios Padre Project, a magmatic-hydrothermal porphyry-epithermal breccia system with a 400-year mining history. Recent drilling has confirmed a large, high-grade Au-Ag-Cu system extending approximately 775 meters down-plunge and remaining open in all directions. The company is transitioning from pure exploration to near-term production planning, leveraging its district footprint and proximity to major producers like Alamos Gold and Agnico Eagle.