Reyna Silver Increases Size of Brokered Private Placement to C$4.0 Million

Rhea-AI Summary

Reyna Silver Corp has announced the expansion of its private placement offering from C$3 million to C$4 million due to strong investor interest. The offering will consist of up to 11,111,111 units priced at C$0.36 each, with each unit including a common share and a warrant exercisable at C$0.50. The net proceeds will be utilized for exploration of the Guigui and Batopilas properties in Chihuahua, Mexico, along with corporate expenses. The expected closing date is around June 21, 2022.

Positive

• Increased offering size to C$4 million, indicating strong investor demand.
• Proceeds allocated for exploration of valuable silver properties in Mexico.

Negative

• Regulatory approvals required, which could delay the offering.
• Forward-looking statements indicate potential risks and uncertainties in achieving corporate objectives.

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

VANCOUVER, BC and HONG KONG, CHINA / ACCESSWIRE / June 7, 2022 / Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna" or the "Company") is pleased to announce that due to significant investor demand, the Company has increased the size of its previously announced "best efforts" private placement (the "Offering") from C$3,000,000 to C$4,000,000 from the sale of up to 11,111,111 units of the Company (the "Units") at a price of C$0.36 per Unit (the "Offering Price").

Each Unit will be comprised of one common share of the Company (each, a "Unit Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall be exercisable to acquire one common share of the Company (each, a "Warrant Share") at a price of C$0.50 at any time on or before the date which is 24 months after the closing date of the Offering.

Red Cloud Securities Inc. (the "Agent") is acting as sole agent and bookrunner under the Offering. The Agent will have an option, exercisable in full or in part up to 48 hours prior to the closing of the Offering, to sell up to an additional 2,777,778 Units at the Offering Price for additional gross proceeds of up to C$1,000,000 (the "Agents' Option").

The Units will be offered by way of a private placement under the "accredited investor" and "minimum amount investment" exemptions under National Instrument 45-106 - Prospectus Exemptions in all the provinces of Canada. The Units may also be sold in offshore jurisdictions and in the United States to Qualified Institutional Buyers as defined in Rule 144A under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and to Accredited Investors as defined in Rule 501(a) of Regulation D under the U.S. Securities Act, by way of a private placement basis pursuant to exemptions from the registration requirements of the U.S. Securities Act.

The Company intends to use the net proceeds from the Offering for the exploration of the Company's Guigui and Batopilas properties in Chihuahua, Mexico and for general corporate and working capital purposes. The Offering is scheduled to close on or around June 21, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The Unit Shares and Warrant Shares will have a hold period of four months and one day from the closing date of the Offering.

The Agent will receive a cash commission of 6.5% of the gross proceeds of the Offering as well as broker warrants in an amount equal to 6.5% of the number of Units sold pursuant to the Offering. Each broker warrant will be exercisable to purchase one Unit at $0.36 for a period of 24 months following the closing date of the Offering.

The securities described herein have not been, and will not be, registered under the United States Securities Act, or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

On Behalf of the Board of Directors of Reyna Silver Corp.

Jorge Ramiro Monroy
Chief Executive Officer

For Further Information, Please Contact:

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

About Reyna Silver Corp.

Reyna Silver Corp. (TSXV: RSLV) is a growth-oriented junior exploration and development company focused on exploring for high-grade, district-scale silver deposits in Mexico and USA.

Reyna's principal properties are the Guigui and Batopilas Properties in Chihuahua, Mexico and the Medicine Springs property in Nevada, USA. Guigui covers the interpreted source area for the Santa Eulalia Carbonate Replacement District (CRD) and Batopilas covers most of Mexico's historically highest-grade silver system. Medicine Springs, where the Company has an option to acquire an 80% interest, appears to host a largely buried, widely developed CRD system.

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.

Cautionary Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. In particular, this news release contains forward-looking information pertaining to the following: the likelihood of completion of the Offering, the use of proceeds from the Offering, the anticipated closing date of the Offering and the ability to obtain the necessary regulatory authority and approvals in connection with the Offering.

In making the forward-looking information in this release, Reyna has applied certain factors and assumptions that are based on Reyna's current beliefs as well as assumptions made by and information currently available to Reyna. Although Reyna considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. Such factors include, among others: the inability to obtain the necessary regulatory approvals from the applicable securities regulators or obtain the approval of the TSX Venture Exchange in connection with the Offering, the occurrence of a material adverse change, disaster, change of law or other failure to satisfy the conditions to closing of the Offering; the inability of the Company to apply the use of proceeds from the Offering as anticipated; the ability of the Company to achieve its corporate objectives or otherwise advance the progress of Reyna; risks related to the international operations; the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results and other geological data; the Company's inability to obtain any necessary permits, consents or authorizations required for its activities; general market and industry conditions; and those risks set out in the Company's public documents filed on SEDAR.

Readers are cautioned not to place undue reliance on forward-looking information. Reyna does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Reyna Silver Corp.

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FAQ

What is the size of Reyna Silver's private placement offering announced on June 7, 2022?

Reyna Silver increased its private placement offering from C$3 million to C$4 million.

What will the proceeds from Reyna Silver's private placement be used for?

The proceeds will be used for exploration of the Guigui and Batopilas properties in Chihuahua, Mexico, and for general corporate purposes.

What is the expected closing date for Reyna Silver's private placement?

The private placement is expected to close on or around June 21, 2022.

What is the exercise price for the warrants in Reyna Silver's offering?

The warrants will be exercisable at a price of C$0.50.

What risks are associated with Reyna Silver's private placement offering?

Risks include the need for regulatory approvals and uncertainties in achieving corporate objectives.