Pinnacle Silver and Gold has closed its non-brokered private placement to raise gross proceeds of nearly $1.7 million.
Due to strong investor demand, the offering was oversubscribed and now consists of just over 28 million units, with each Unit, priced at $0.06 and comprising one share and half a $0.10 warrant.
Finder’s fees consisting of $20,622 in cash commission and 343,700 non-transferable finder’s warrants were paid in connection with the offering.
The net proceeds will be used to advance Pinnacle’s 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 in the Americas. The Potrero project in the 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 owns a 100% interest in the past-producing, high-grade Argosy gold mine and the adjacent North Birch project.
View from Vox
Good to see Pinnacle’s financing in the bag, and the company now positioned to undertake a significant work programme at El Potrero. That this raising was oversubscribed tells us two things. First, El Potrero looks good to investors, and demand to get in on the action is significant. And second, more broadly, appetite in the equity markets is continuing strong, at least for now. Watch this space for further action.