Pinnacle Silver and Gold (TSX-V:PINN) is arranging a non-brokered private placement to raise gross proceeds of up to C$2.2 million ($2.23 million).
The offering comprises up to 20 million units priced at C$0.11 each. Each unit consists of one common share and half a share purchase warrant, with each whole warrant exercisable into an additional share at C$0.16 for 24 months.
Red Cloud Securities is acting as a finder for the placement. Finder’s warrants entitle holders to acquire common shares at C$0.16 per share over a 24-month period.
Pinnacle says net proceeds will advance the El Potrero Gold-Silver Project in Durango, Mexico, fund project evaluations, and provide general working capital.
Company insiders are participating in the placement, which constitutes a related-party transaction under multilateral instrument 61-101. However, Pinnacle is exempt from formal evaluation and minority shareholder approval requirements as market capitalisation thresholds will not be exceeded.
The placement expects to close on or about 13 August 2026, subject to TSX Venture Exchange approval.
The company notes all issued securities carry a four-month hold period.
Project potential
El Potrero is located in the Sierra Madre Occidental region of western Mexico within 35km of four operating mines, including Fresnillo’s (LON:FRES) Ciénega Mine, Luca Mining’s (TSX-V:LUCA) Tahuehueto Mine, and Guanajuato Silver’s (TSX-V:GSVR) Topia Mine.
Held privately for nearly 40 years, the property remains underexplored using modern techniques.
The site features road access, proximity to power within 3km, and an existing 100-tonne-per-day plant that can be refurbished to achieve near-term production once permits are secured.
Pinnacle earns an initial 50% interest immediately upon commencing production, with plans to fund development through cash flow to reach 100% ownership, subject to a 2% net smelter return.
Pinnacle Silver and Gold is focused on developing precious metals projects in the Americas.
Write to Paula Fabe at Mining.com.au
Images: Pinnacle Silver and Gold
