• The Settlement – Pinnacle Silver and Gold Corp. (“Pinnacle”) has signed a Letter of Intent (the “LOI”) with an arm’s size non-public particular person and an organization he controls whereby Pinnacle can have a staged possibility to accumulate as much as a 100% curiosity within the 1,074 hectare El Potrero high-grade gold-silver undertaking in Durango, Mexico.
• Prolific Space with Main Working Mines Close by – El Potrero is positioned within the prolific Sierra Madre Occidental of western Mexico and lies inside 35 kilometres of 4 working mines, together with the 4,000 tonnes per day (tpd) Ciénega Mine (Fresnillo), the 1,000 tpd Tahuehueto Mine (Luca Mining) and the 250 tpd Topia Mine (Guanajuato Silver).
• Excessive Grade & District-scale with Exploration Upside – Excessive-grade gold-silver mineralization happens in a low sulphidation epithermal breccia vein system hosted inside andesites of the Decrease Volcanic Collection and has at the very least six historic mines alongside the four-kilometre strike size. A historic useful resource based mostly upon underground sampling is reported to include 45,561 tonnes at 8.0 g/t gold and 186 g/t silver (10.3 g/t gold equal or 845 g/t silver equal).1, 2 The property has been in non-public arms for nearly 40 years and has by no means been drilled or explored by trendy strategies, leaving important exploration potential.
• Close to-term Manufacturing Chance – A 100 tpd plant on web site could be refurbished / rebuilt and historic underground mine workings rehabilitated at comparatively low price with a view to obtain near-term manufacturing as soon as permits are in place.
• Infrastructure Pleasant – Property is highway accessible with an influence line inside 4 kilometres. Floor rights are privately owned (no group points) and the acquisition contains roughly 200 hectares of land the place the plant sits.
• Staged Possibility and Earn-In Proper – Pinnacle will earn an preliminary 50% curiosity instantly upon commencing manufacturing. The objective would then be to generate adequate money movement with which to additional develop the undertaking and enhance the Firm’s possession to 100% topic to a 2% NSR. If profitable, this strategy could be much less dilutive for shareholders than counting on the nonetheless difficult fairness markets to finance the expansion of the Firm.
• Confirmed Administration Experience in Working Gold/Silver Mines in Mexico – Pinnacle’s Board and Administration have appreciable years of expertise and success working within the Sierra Madre gold-silver belt of Mexico. Pinnacle’s President & CEO, Robert Archer was a co-founder of Nice Panther Silver, that originally acquired and restarted the Topia Mine in 2004-06, and efficiently transitioned the corporate from explorer and developer to mid-size silver miner reaching $600 million market capitalization and itemizing on NYSE-American. Non-executive director David Salari is concerned within the improvement of two mines in Mexico and Colin Jones, additionally a non-executive director, is a Technical Advisor to a different explorer within the area.
• The LOI – The non-binding LOI is conditional upon numerous customary circumstances, together with completion of passable due diligence by Pinnacle, completion of a financing, the submitting of a NI 43-101 Technical Report, the execution of a proper Definitive Settlement and last approval of the TSX Enterprise Change. Pinnacle has exclusivity throughout the 3-month LOI interval.
VANCOUVER, BRITISH COLUMBIA, October 28, 2024 – TheNewswire – (TSXV:PINN; OTC:NRGOF; Frankfurt:P9J) – Pinnacle Silver and Gold Corp. (“Pinnacle” or the “Firm”) is happy to announce that it has signed a Letter of Intent (the “Transaction”) to accumulate as much as a 100% curiosity, topic to a 2% NSR, in a reportedly high-grade gold-silver undertaking in Durango, Mexico.
Positioned within the prolific Sierra Madre Development of Mexico, which hosts a number of world class gold-silver mines and sources, the 1,074 hectare El Potrero Undertaking lies inside a 35-kilometre radius of 4 producing mines, together with La Ciénega, certainly one of Mexico’s largest underground gold-silver mines. Beneath a single proprietor for about 40 years, the Potrero property has been topic to small scale manufacturing in 1989-90 and accommodates a 100 tonne per day plant that may be refurbished / rebuilt at comparatively low price. Equally, the underground mines are accessible through adits (no shafts) and could be rehabilitated pretty rapidly and inexpensively. At that time, the seller and the Firm will share equally in all proceeds of manufacturing, permitting the Firm to additional develop the property with out undue shareholder dilution.
“We’re extraordinarily happy to have the chance to develop and discover the El Potrero Property,” said Robert Archer, Pinnacle President & CEO. “It’s centered in a well-mineralized district and has had high-grade historic manufacturing of its personal, but the four-kilometre strike size of the vein system has not been drilled or systematically explored by trendy strategies. Common gold and silver grades are reported to be within the vary of 10.3 g/t gold equal or 845 g/t silver equal.
Within the present setting of excessive steel costs, this presents an thrilling alternative to develop the property from the proceeds of manufacturing and proceed to advance the undertaking and construct the corporate by means of extra acquisitions in a non-dilutive method. This can be a enterprise mannequin that I’m very conversant in, having efficiently applied it up to now with Nice Panther.”
The property hosts a four-kilometre strike size of a northwest-southeast trending epithermal vein system containing excessive grade gold and silver mineralization. The veins are brecciated and hosted in andesitic volcanics of the Tertiary Decrease Volcanic Collection close to the contact with the overlying Higher Volcanic Collection. A number of small mines, accessible by adits into the aspect of the hill, exist alongside the system and a few have been exploited within the 1980’s and probably earlier than. Vein widths are reported to be within the 0.5 to 10 metre vary. Vein textures point out that the mines could also be sitting pretty excessive within the epithermal system implying good potential to increase the mineralization to depth.
There was no drilling on the property and no detailed manufacturing information have been supplied so far, however longitudinal sections of the mine workings point out mineralized blocks totalling a historic useful resource of 45,561 tonnes at 8.0 g/t gold and 186 g/t silver (10.3 g/t gold equal or 845 g/t silver equivalent1, 2). First-pass sampling has been carried out as a part of Pinnacle’s due diligence and samples are within the lab at SGS Durango. It’s the Firm’s intention to conduct intensive underground sampling, commencing as quickly as potential after signing the Definitive Settlement. A diamond drill program may also be deliberate to initially take a look at the continuity of mineralization in and across the outdated workings, adopted by step out drilling alongside strike and down-dip.
A 100 tonne per day processing plant with a vat-leach cyanidation and Merrill Crowe circuit was in operation in 1989-1990. The essential infrastructure is sound, however some tools will want alternative. The principle energy grid is barely 4 kilometres away and the property is highway accessible, being roughly 9 hours from Durango Metropolis and two hours from Topia. Working permits will have to be re-established. A geotechnical analysis of the mine workings might be carried out with a view to design and implement a rehabilitation plan.
1, 2 See footnotes above
Phrases of the Transaction
The Transaction has been structured as a staged earn-in, permitting the Firm to accumulate a direct curiosity within the property and infrastructure in line with the next schedule, money funds and share issuances (all greenback quantities are in United States {Dollars}):
▪ On signing a Definitive Settlement (the “DA”) – $50,000 money and 500,000 shares of Pinnacle. Pinnacle can pay the again taxes for the property (estimated at $160,000).
▪ 8 months from signing the DA – $200,000 money and 1,000,000 shares of Pinnacle.
▪ 1 12 months from signing the DA – $750,000 money and 1,000,000 shares of Pinnacle.
▪ When the Firm has established a Mineral Useful resource Estimate, as outlined by NI 43-101, of at the very least 350,000 gold equal ounces within the Inferred class, or 2.5 years from signing the DA, no matter occurs first – $1,000,000 money and 1,000,000 shares of Pinnacle.
▪ When the plant is sufficiently upgraded and all permits acquired with a view to start manufacturing, or 4 years from signing the DA, no matter occurs first – $1,000,000 money. Pinnacle receives a 50% curiosity within the property (together with the mining concessions, equipment, tools and land) and, going ahead, all proceeds of manufacturing might be break up in line with the respective curiosity ranges.
▪ 1 12 months after commencing manufacturing or 5 years from signing the DA, no matter occurs first -$1,500,000 money. Pinnacle receives an extra 20% curiosity within the property.
▪ 2 years after commencing manufacturing or 7 years from signing the DA, no matter occurs first -$3,000,000 money. Pinnacle receives an extra 20% curiosity within the property, totaling 90%. At this level, each events will resolve whether or not to proceed with a taking part curiosity or the seller can have the choice to transform the remaining 10% curiosity to a 2% NSR royalty.
Totals of $7,500,000 money (plus roughly $160,000 in back-taxes) and three,500,000 shares of Pinnacle for a 100% curiosity topic to a 2% NSR royalty.
Pinnacle would be the operator all through the time period of the settlement, oversee allowing, and make the semi-annual cost of mining taxes, and so on. If, at any time, Pinnacle decides to not proceed, the Firm may both proceed to function at its stage of curiosity at the moment or promote its curiosity, through which case the seller would have a Proper Of First Refusal (ROFR).
Half and Parcel Financing (All greenback figures in CAD):
Pinnacle might be arranging a non-public placement to boost gross proceeds of as much as $800,000 (the “Financing”), to shut concurrently with the closing of the Transaction. The position will include as much as 20,000,000 items (the “Items”) at a worth of $0.04 per Unit, with every Unit comprising one widespread share (“Share”) within the capital of the Firm and one-half share buy warrant (“Warrant”), whereby every complete Warrant shall be convertible into an extra Share at an train worth of $0.06 for a interval of 24 months from the date of issuance. Finder’s charges might also be paid.
The online proceeds raised from the Financing might be used for exploration and improvement of the Potrero Undertaking and for working capital.
All securities to be issued might be topic to a four-month maintain interval from the date of issuance and topic to TSX Enterprise Change approval. The securities supplied haven’t been registered beneath the United States Securities Act of 1933, as amended, and will not be supplied or bought in the US absent registration or an relevant exemption from the registration necessities.
Due Diligence and Indicative Timeline:
Beneath the phrases of the non-binding LOI, the events have agreed to a interval of as much as 3 months to finalize due diligence investigations, file a NI 43-101 Technical Report, full the aforementioned financing, execute a Definitive Settlement and procure last TSXV approval.
Different Info:
The Transaction just isn’t a non-arm’s-length transaction inside the which means of the insurance policies of the TSXV. A Finder’s Payment of 4% of the money and shares might be payable to an arm’s size particular person.
The Transaction is taken into account to be a Elementary Acquisition by the TSXV. Buying and selling within the shares of the Firm on the TSXV has been halted and can stay halted pending formal approval of the Transaction by the TSXV.
Certified Individual
Mr. Robert A. Archer, P. Geo, a Certified Individual as outlined by Nationwide Instrument 43-101, and the President and CEO of the Firm, has reviewed, verified and accredited for disclosure the technical info contained on this information launch.
ABOUT PINNACLE SILVER AND GOLD CORP.
Pinnacle is at present targeted on district-scale exploration for valuable metals within the prolific Crimson Lake District of northwestern Ontario. The past-producing high-grade Argosy Gold Mine is open to depth, whereas the adjoining North Birch Undertaking provides extra district-scale potential. Pinnacle can be actively on the lookout for different district-scale alternatives within the Americas, with a selected give attention to silver and gold. With a seasoned, extremely profitable administration crew and high quality initiatives, Pinnacle Silver and Gold is dedicated to constructing long-term, sustainable worth for shareholders.
Signed: “Robert Archer” President & CEO
FOR FURTHER INFORMATION CONTACT:
E-mail: data@pinnaclesilverandgold.com Tel.: +1-877-271-5886 ext. 110
Web site: www.pinnaclesilverandgold.com
Neither the TSX Enterprise Change nor the Funding Business Regulatory Group of Canada accepts accountability for the adequacy or accuracy of this launch.
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