Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) has raised $1.65 million to advance its high-grade El Potrero gold-silver project in Durango, Mexico, closing the final tranche of its non-brokered private placement.
The second tranche issued 9,096,132 units at $0.11 per unit for gross proceeds of $1,000,575, subject to TSX Venture Exchange approval.
The full offering totalled $1,652,654 from 15,024,132 units, each comprising one common share and one-half share purchase warrant. Each whole warrant is exercisable into an additional share at $0.16 for 24 months from issuance.
Net proceeds will also fund project evaluations and general working capital.
Insiders subscribed for 1,650,000 units in the first tranche for gross proceeds of $181,500.
El Potrero sits within 35 kilometres of four operating mines in the Sierra Madre Occidental. The property has three historic mines along a 500-metre strike length and has never been systematically explored with modern methods. A previously operational 100 tonne-per-day plant on site can be refurbished at relatively low cost to achieve near-term production once permits are in place.
Pinnacle will earn an initial 50% interest upon commencing production, with the goal of reaching 100%, subject to a 2% NSR.
