Pinnacle Silver and Gold (PINN) is arranging a non-brokered private placement to raise gross proceeds of up to $2.52 million.
The placement will consist of up to 18 million units, with each unit, priced at $0.14, comprising one share and one-half warrant. Each whole warrant is convertible into an additional share at an exercise price of $0.20 for a period of 24 months.
Pinnacle expects the offering to close on or about 19 December 2025.
The net proceeds raised will be used to advance the high-grade El Potrero gold-silver project in Durango, Mexico, for project evaluations, and for general working capital.
All securities to be issued will be subject to a four-month hold period.
El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35 kilometres of four operating mines, including the 4,000 tonnes per day Ciénega mine owned by Fresnillo, the 1,000 tpd Tahuehueto mine owned by Luca Mining, and the 250 tpd Topia mine owed by Guanajuato Silver.
High-grade gold-silver mineralization occurs in a low sulphidation epithermal breccia vein system at El Potrero along a 500 metre strike length. The property has been in private hands for almost 40 years and has never been systematically explored by modern methods, allowing for significant exploration upside.
A previously operational 100 tpd plant on site can be refurbished or rebuilt, and historic underground mine workings rehabilitated at relatively low cost in order to achieve near-term production. Pinnacle will earn an initial 50% interest immediately upon commencing production.
The goal would then be to generate sufficient cash flow with which to develop the project further and increase the company’s ownership to 100% subject to a 2% net smelter royalty.
View from Vox
Good to see this funding fall into place to allow Pinnacle to take El Potrero on to the next stage. There’s a big opportunity here for modern exploration and development techniques to uncover value that was understandably missed by the old-timers. The next big step will be drilling, most likely from the old underground workings in the first instance, and the results from that work will be key in determining how the project then goes forward.