Pinnacle Closes First Tranche of Private Placement
Pinnacle secures $0.11 million in financing to advance drilling at its El Potrero project.
Pinnacle Silver and Gold Corp. has closed the first tranche of its previously announced non-brokered private placement, raising gross proceeds of $652,080. The company issued 5,928,000 units at a price of $0.11 per unit. Each unit includes one-half share purchase warrant exercisable at $0.16 per share for 24 months. Company insiders subscribed for 1,650,000 units, contributing $181,500 to the tranche.
Net proceeds are designated for advancing the El Potrero gold-silver project in Durango, Mexico, and for general working capital. The transaction is exempt from formal minority shareholder approval under MI 61-101 due to its size relative to market capitalization. Securities are subject to a four-month hold period and await TSX Venture Exchange approval.
Pinnacle Silver and Gold Corp. (PINN) has closed the first tranche of its capital raise, a routine follow-up to the July 13, 2026 announcement to raise up to $2.2 million. The transaction provides necessary working capital to continue underground delineation drilling, surface exploration, and metallurgical optimization at the El Potrero project.
The shares were priced at $0.11, consistent with recent trading levels and the previous tranche pricing. Insider participation in the offering aligns with management's confidence in the project's near-term production potential.
The news does not introduce new operational milestones or unexpected financial terms; it simply executes on a previously disclosed capital raise plan. The impact is incremental and expected, supporting the company's path toward a formal production decision targeted for late 2026.
Pinnacle Silver and Gold Corp. is a development-stage precious metals company focused on the El Potrero project in Durango, Mexico. El Potrero is a past-producing underground mine that operated from 1989 to 1990 and features a low-sulphidation epithermal gold-silver vein system. The property spans 1,074 hectares and includes three historic mines—Pinos Cuates, Dos de Mayo, and La Dura—along a 500-meter strike, with LiDAR surveys extending the known trend to over 1,600 meters.
The company holds an earn-in agreement to acquire an initial 50% interest upon production commencement, with the goal of increasing to 100% ownership subject to a 2% net smelter return (NSR) royalty. An existing 100-tonnes-per-day processing plant sits on-site and can be refurbished for near-term production. Recent channel sampling has returned high-grade intercepts, including up to 26.1 g/t Au and 511 g/t Ag at Dos de Mayo Norte, as well as polymetallic silver-lead-zinc discoveries on the MF2 block. Metallurgical testing demonstrates robust gold recoveries exceeding 97% via direct cyanide leaching, simplifying the future plant flow sheet.