Pinnacle Silver and Gold (TSX-V:PINN) has closed the first tranche of a private placement, raising C$652,080 ($660,809) to fund its flagship project in Mexico.
The tranche comprised 5.93 million units priced at C$0.11 each. Each unit consists of one Pinnacle common share and one-half of a share purchase warrant, with each whole warrant exercisable at C$0.16 for two years.
As announced last month, Pinnacle plans to issue up to 20 million units under the placement for total gross proceeds of C$2.2 million.
The company intends to use the proceeds to advance the El Potrero Project in Durango, where it is refurbishing an existing processing plant and rehabilitating historic mine workings, with the aim of bringing the project into production in 2027.
El Potrero hosts a low-sulphidation epithermal vein system within the Sierra Madre Occidental, a major silver-gold mineral belt extending along western Mexico.
The project is located within a ‘high-grade’ polymetallic mining district with four producing mines within 35km.
Three historic artisanal underground mines on the property previously supplied a 100-tonne-per-day processing plant that operated in the late 1980s. However, no systematic exploration or development has been conducted since.
Pinnacle entered the project in late 2024 through an option agreement with an arm’s-length private owner that had held the property for decades and constructed the processing plant about 35–40 years ago.
Under the agreement, Pinnacle will earn an initial 50% interest in El Potrero upon achieving production and may acquire the remaining 50% through additional production milestones.
Pinnacle Silver and Gold is focused on the development of precious metals projects in the Americas.
Write to Jackson Chen at Mining.com.au
Image: Pinnacle Silver and Gold
