Pinnacle Silver and Gold Corp. Closes Final Tranche of Private Placement

Pinnacle Silver and Gold Corp. has successfully closed its second and final tranche of a non-brokered private placement, raising a total of $1,652,654. The company issued 15,024,132 units, each consisting of one common share and one-half of a share purchase warrant, at a price of $0.11 per unit. This brings the total number of units issued to 15,024,132, with each warrant allowing the holder to acquire one additional share at an exercise price of $0.16 for a period of 24 months from the date of issuance.

The finders' fees for the entire offering amounted to $7,524 in cash and 68,400 non-transferable finders' warrants. Insiders of the company participated in the first tranche, subscribing for a total of 1,650,000 units and gross proceeds of $181,500. This participation constitutes a related-party transaction under Multilateral Instrument 61-101, but the company is exempt from the requirements to obtain a formal evaluation or minority shareholder approval.

The net proceeds from the offering will be used to advance the high-grade El Potrero gold-silver project in Durango, Mexico. The project, located within 35 kilometers of four operating mines, including the 4,000 tpd Ciénega Mine (Fresnillo) and the 1,000 tpd Tahuehueto Mine (Luca Mining), hosts an underexplored low-sulphidation epithermal vein system. The property has three historic mines along a 500-meter strike length and has been in private hands for nearly 40 years, offering significant exploration potential.

A previously operational 100 tpd plant on site can be refurbished or rebuilt at a relatively low cost, and historic underground mine workings can be rehabilitated to achieve near-term production once permits are in place. The property is road accessible, with a power line within three kilometers. Pinnacle will earn an initial 50% interest immediately upon commencing production and aims to generate sufficient cash flow to further develop the project and increase its ownership to 100%, subject to a 2% net smelter return (NSR).

With the completion of this financing, Pinnacle Silver and Gold Corp. is well-positioned to advance the El Potrero project and explore its potential for near-term production. The company remains focused on the development of precious metals projects in the Americas, with a particular emphasis on the high-grade Potrero gold-silver project in Mexico’s Sierra Madre Belt.