Pinnacle Silver and Gold (PINN ) is arranging a non-brokered private placement to raise up to $2.2 million.
The placement will consist of up to 20 million units, with each unit, priced at $0.11, comprising one share and one-half a warrant.
Each whole warrant is convertible at an exercise price of $0.16 for a period of 24 months from the date of issuance.
The company expects the offering to close on or about August 13, 2026.
The net proceeds will be used to advance the high-grade El Potrero gold-silver project in Durango, Mexico, for project evaluations, and for general working capital.
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 , owned by Guanajuato Silver.
It has three historic mines along a 500 metre strike length.
However, the property has been in private hands for almost 40 years and has never been systematically explored by modern methods, leaving significant exploration potential. 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, once permits are in place. The property is road accessible with a power line within three kilometres.
Pinnacle will earn an initial 50% interest immediately upon commencing production. The goal would then be to generate sufficient cash flow with which to further develop the project and increase the company’s ownership to 100% subject to a 2% net smelter royalty.
View from Vox
With this funding in place Pinnacle will be able to move El Potrero rapidly towards a production-ready status, following the significant drilling that’s being undertaken this year. It won’t take much to get El Potrero back into operations, assuming the permits come through, and all told it’s been heartening to see how quickly the company has been able to move the project along. Good to see it getting support in the market, too.