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.