Pinnacle Silver and Gold Corp (PINN) is increasing its non-brokered private placement to raise gross proceeds of up to C$1.65 million.
The offering will now consist of up to 27.5 million units with each unit, priced at C$0.06, comprising one share and one-half share purchase warrant.
Each warrant shall be convertible into an additional share at an exercise price of C$0.10 for a period of 24 months from the date of issuance. Finder’s fees consisting of 7 per cent in cash commission and 7% in non-transferable finders' warrants may be paid in connection with the offering. Each finder's warrant entitles the holder to acquire one common share at $0.10 cents per share over a 24-month period.
The net proceeds raised from the offering will be used to advance the high-grade El Potrero gold-silver project in Durango, Mexico, and for general working capital.
Pinnacle is focused on district-scale exploration for precious metals. The high-grade Potrero gold-silver project in Mexico’s Sierra Madre Belt hosts an underexplored low-sulphidation epithermal vein system and provides the potential for near-term production.
In the prolific Red Lake district of northwestern Ontario, the company also owns a 100% interest in the past-producing, high-grade Argosy gold mine and the adjacent North Birch project.
View from Vox
The increased size of the placement is testament both to the potential that the market sees in El Potrero and to the revival of interest in the mining sector generally. Pinnacle has an experienced team that knows how to get things done in Mexico - knows how to explore, how to operate mines and how to get on with the locals. That skill, combined with the recent high grades that have come out of El Potrero, makes for an attractive offering.