Regency Silver Corp. (TSXV: RSMX) (OTCQB: RSMXF) announced on 11 September 2026 that it has agreed to acquire a 100% interest in the Jabali Gold Project in the Mulatos Mining District of Sonora, Mexico, by purchasing all shares of Tarachi Gold S.A. de C.V. The project encompasses the former La Dura underground gold mine across approximately 569 hectares of mining concessions, situated six kilometres west of Alamos Gold's producing Mulatos Mine. The acquisition adds a formerly producing gold asset to Regency's existing Sonora portfolio, which includes the flagship Dios Padre gold-copper-silver project.

Key Points

  • Regency Silver Corp. (TSXV: RSMX) (OTCQB: RSMXF) (FSE: ZJ90)
  • Regency has agreed to acquire 100% of the Jabali Gold Project in Sonora, Mexico, via purchase of Tarachi Gold S.A. de C.V.
  • Consideration includes USD $70,000 at signing, 20 million shares upon completion of a toll-milling agreement, production-linked cash payments of USD $1 million at six months and USD $1 million at twelve months after commercial production begins, a USD $2 million payment upon extraction of 50,000 gold-equivalent ounces, and a 2% NSR royalty
  • Transaction close is targeted on or around 30 September 2026, subject to TSX Venture Exchange approval

Jabali Project Location and Historical Drilling at La Dura Mine

The Jabali project is located in Sonora's Mulatos Mining District, within the Sierra Madre Occidental gold belt — the same geological corridor as Regency's Dios Padre flagship project, approximately 20 kilometres away. Historical drilling by prior operators Urastar and Tarachi Gold returned selected intercepts including 6.91 g/t gold over 63.4 metres and 7.26 g/t gold over 12 metres. The release notes these results have not been verified by a qualified person on behalf of Regency Silver and are provided solely as historical information. Regency plans to validate the drill database through a Phase 1 twin-hole programme.

Structured Consideration and Transaction Terms

Under the binding agreement dated 8 September 2026, Regency will pay USD $70,000 upon signing and issue 20 million shares contingent on execution of a toll-milling agreement at market terms with a nearby mine. Those shares are subject to a voluntary pooling arrangement releasing five million shares upon exchange approval and five million shares every six months thereafter. Additional cash consideration is tied to production milestones: USD $1 million six months after commercial production begins, a further USD $1 million after twelve months, and USD $2 million following the extraction of 50,000 gold-equivalent ounces from the project. A 2% net smelter return royalty also forms part of the consideration. No finder's fees are payable.

Metallurgical Results and Pathway to Restart

Metallurgical test work conducted in 2021 by a prior operator and processed by Bureau Veritas showed average gold recovery of 94.8% using standard cyanide leaching at 40 weight-percent solids over 48 hours. Regency states it is currently conducting studies to determine the capital and operating costs required for a production restart, and is preparing an NI 43-101 technical report for the project. The company's stated strategy is to restart La Dura under a toll-milling model, leveraging proximity to existing processing infrastructure in the district.