Pinnacle Silver and Gold to raise up to C$2.2M in private placement

Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) announced plans for a non-brokered private placement to raise gross proceeds of up to C$2.2 million to fund work at its El Potrero gold-silver project in Mexico and for general working capital.

The offering will consist of up to 20 million units priced at C$0.11 each. Each unit will include one common share and one-half of one share purchase warrant. Each whole warrant will be exercisable at C$0.16 per share for a period of 24 months from the date of issuance.

Red Cloud Securities is acting as a finder for the offering, and additional finders' fees may also be paid. Each finder's warrant will entitle the holder to acquire one common share at an exercise price of C$0.16 for a period of 24 months.

Company insiders are expected to participate in the financing. Pinnacle said the insider participation will constitute a related-party transaction under Multilateral Instrument 61-101 but will be exempt from formal valuation and minority shareholder approval requirements because the value of the transaction does not exceed 25% of the company's market capitalization, as calculated under the instrument.

Pinnacle said the net proceeds will be used to advance its high-grade El Potrero gold-silver project in Durango, Mexico, including project evaluations, as well as for general working capital purposes.

The company said it expects the offering to close on or about August 13, subject to TSX Venture Exchange approval.