Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF) said on Tuesday it will raise up to C$2.52 million through a non-brokered private placement to fund exploration and development at its El Potrero gold-silver project in Durango, Mexico.
The offering will consist of up to 18 million units priced at C$0.14 each, with every unit comprising one common share and one-half warrant. Each whole warrant will allow the holder to purchase an additional share at $0.20 for 24 months.
The company may pay finders' fees of 6% in cash and 6% in non-transferable warrants.
Pinnacle expects the financing to close on or around December 19, and said insiders will participate.
Proceeds will be used to advance El Potrero, a high-grade epithermal gold-silver project in the Sierra Madre Occidental, as well as for project evaluation and general working capital.
El Potrero sits near several producing mines, hosts historic workings over a 500-metre strike length and includes a previously operational 100-tonne-per-day plant that could be refurbished for near-term production. Pinnacle said it will earn an initial 50% interest upon starting production and aims to reach full ownership through cash flow, rather than additional equity financing.