Reyna Silver Announces Upsize to $4.4 Million and Second Closing of LIFE Offering And Concurrent Private Placement Tranches

Rhea-AI Summary

Reyna Silver Corp. increases non-brokered private placement to meet investor demand, raising up to $2.9 million. Insiders participate in the placement, with plans for subsequent closings. The Company aims to use the funds for exploration projects and general corporate purposes.

Not for Distribution to United States Newswire Services or for Dissemination in the United States.

VANCOUVER, BC and HONG KONG, CHINA / ACCESSWIRE / March 6, 2024 / Reyna Silver Corp. (TSXV:RSLV)(OTCQB:RSNVF)(FRA:4ZC) ("Reyna" or the "Company") is pleased to announce that, due to investor demand, it is has increased the size of its non-brokered listed issuer financing exemption (LIFE) private placement (the "LIFE Offering"), previously announced on February 14, 2024 and amended February 26, 2024, and its previously announced concurrent non-brokered private placement (the "Concurrent Private Placement", and together with the LIFE Offering, the "Offerings") to purchasers pursuant to other applicable exemptions under NI 45-106. The amended LIFE Offering is for up to 24,166,667 units of the Company ("Units") at a price of $0.12 per Unit (the "Issue Price") for gross proceeds of up to approximately $2,900,000, increased from $2,500,000. Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of $0.20 for a period of 36 months from the date of issuance.

The amended Concurrent Private Placement is for up to 12,500,000 Units for gross proceeds of up to approximately $1,500,000, increased from $500,000. Certain insiders of the Company are participating in the Concurrent Private Placement for 1,633,332 Units for gross proceeds of approximately $196,000. 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 Concurrent 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 first closing of the LIFE Offering was completed on February 26, 2024. The second closing of the LIFE Offering and the first closing of the Concurrent Private Placement was completed today, on March 6, 2024, as discussed further below. Company may sell additional Units in the Offerings in one or more subsequent closings, on such dates as the Company may determine, with the final closing anticipated to occur on March 11, 2024. The closings of the Offerings are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including final acceptance from the TSX Venture Exchange.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"), the LIFE Offering is being made pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the "Exemption"). The securities offered under the Exemption will not be subject to a hold period in accordance with applicable Canadian securities laws. There is an amended and restated offering document relating to the LIFE Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.reynasilver.com. Prospective investors should read this amended and restated offering document before making an investment decision. All securities issued in connection with the Concurrent Private Placement will be subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws.

The Company is also pleased to announce a second closing of the LIFE Offering of 8,240,666 Units for gross proceeds of approximately $988,880and a first closing of the Concurrent Private Placement of 12,401,610 Units for gross proceeds of approximately $1,488,193.

The Company closed the first tranche of the LIFE Offering on February 26, 2024 of 13,934,367 Units for gross proceeds of $1,672,124.04.

The Company has paid cash finder's fees equal to 7.0% on certain investments in the Offerings for aggregate fees to date of $225,978 and issued 1,953,158 Finder Warrants (as defined below) to eligible finders, including Haywood Securities Inc., Sprott Global Resource Investments Ltd., East Empire Management Limited, Red Cloud Securities Inc., PI Financial Corp., Research Capital Corporation and Canaccord Genuity Corp. The warrants issued to eligible finders (each, a "Finder Warrant") entitle the holder to acquire one Common Share at a price of $0.12 per Common Share for a period of 36 months from the date of issuance.

The Company will use the net proceeds of the Offering and the Concurrent Private Placement for the exploration of the Company's Gryphon Summit Project, Guigui Project, Batopilas Project and Medicine Springs Project (as defined below), other exploration work and for general corporate and working capital purposes.

For Further Information, Please Contact:

Jorge Ramiro Monroy, Chief Executive Officer
info@reynasilver.com
www.reynasilver.com

About Reyna Silver Corp.

Reyna Silver is a growth-oriented junior exploration and development company. The Company focuses on exploring for high-grade, district-scale silver deposits in Mexico and the United States. In Nevada USA, the Company has recently entered into an option to acquire 70% of the 10,300-hectare "Gryphon Summit Project" in a 50/50 partnership with Reyna Gold Corp. (TSXV:REYG). 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, the Company is advancing its option to acquire 100% of the "Medicine Springs Project" where the Company is exploring a potentially significant Silver-Lead-Zinc-Copper CRD-skarn-Porphyry system. The Company'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 release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements may include, without limitation, statements relating to the Offerings and the use of proceeds therefrom. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company's public securities filings with the Canadian securities commissions. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in 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 otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction. No securities may be offered or sold in the United States or in any other jurisdiction in which such offer or sale would be unlawful absent registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom or qualification under the securities laws of such other jurisdiction or an exemption therefrom.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

SOURCE: Reyna Silver Corp.

View the original press release on accesswire.com

FAQ

What is the new size of Reyna Silver Corp.'s non-brokered private placement?

Reyna Silver Corp. has increased the size of its non-brokered private placement to up to $2.9 million.

What is the Issue Price per Unit in the LIFE Offering?

The Issue Price per Unit in the LIFE Offering is $0.12.

What is the exercise price of the Warrant in the Units?

The Warrant in the Units entitles the holder to acquire one Common Share at an exercise price of $0.20.

What are the plans for subsequent closings of the Offerings?

Reyna Silver Corp. may sell additional Units in one or more subsequent closings, with the final closing anticipated to occur on March 11, 2024.

How will the net proceeds be used from the Offering and the Concurrent Private Placement?

The net proceeds will be used for the exploration of the Company's projects and general corporate and working capital purposes.