Pinnacle Silver and Gold raises $2.2 M private placement for Mexican El Potrero project

Pinnacle Silver and Gold Corp. (TSXV: PINN) announced a non‑brokered private placement to raise up to C$2.2 million (approximately US$2.23 million). The offering consists of up to 20 million units priced at C$0.11 each; each unit contains one common share and half a share‑purchase warrant, with a full warrant convertible into an additional share at C$0.16 within 24 months. Red Cloud Securities is acting as the finder, and company insiders are participating, qualifying the deal as a related‑party transaction under Multilateral Instrument 61‑101. The placement is exempt from formal valuation and minority‑shareholder approval requirements and is subject to TSX Venture Exchange approval, with closing expected around 13 August 2026.

Net proceeds will be used to advance the El Potrero gold‑silver project in Durango, Mexico, fund project evaluations and general working capital. El Potrero lies in the Sierra Madre Occidental, about 35 km from four operating mines (Fresnillo’s Ciénega, Luca Mining’s Tahuehueto, Guanajuato Silver’s Topia). The site, privately held for nearly four decades, has road access, power within three kilometres and an existing 100‑tonne‑per‑day plant that can be refurbished for near‑term production once permits are secured. Pinnacle will initially acquire a 50 % stake upon production start and plans to increase to 100 % ownership through cash flow, subject to a 2 % net smelter return.