Pinnacle Silver secures Auramet financing partner for El Potrero mine development

Pinnacle Silver and Gold CEO Robert Archer joined Steve Darling from Proactive to discuss the company’s agreement with Auramet Capital Partners to arrange up to US$5 million in non-equity project financing for the development of its high-grade El Potrero gold-silver project in Durango, Mexico. Archer said Auramet has been appointed as Lead Project Financier and will work with Pinnacle during a seven-month exclusivity period to structure a financing package, subject to due diligence, operational progress, and customary closing conditions. Management believes the non-equity approach could significantly reduce shareholder dilution while advancing the project toward production. Development at El Potrero continues to move forward, with underground delineation drilling underway and two phases of metallurgical testing returning encouraging results. Test work indicates head grades averaging approximately 7.7 g/t gold and 116 g/t silver, with gold recoveries exceeding 97% and silver recoveries of roughly 70%. The company has also completed a feasibility study for a 3.3-kilometre powerline extension, while baseline studies for a water licence and other permitting requirements are progressing. Community agreements are also being finalized to support future mine development. Auramet is one of the world's largest precious metals merchants and has provided more than US$1.5 billion in project financing since its founding in 2004. The firm offers project finance, direct lending, physical metals trading, and merchant banking services across the global precious metals industry. Under Pinnacle's agreement for El Potrero, the company will earn an initial 50% interest upon commencing production. Management's objective is to use project cash flow to increase its ownership to 100%, subject to a 2% net smelter return (NSR) royalty. Archer said the financing strategy is designed to accelerate development while minimizing equity dilution and positioning El Potrero as a potential near-term gold and silver producer. #proactiveinvestors #pinnaclesilverandgoldcrp #robertarcher #tsxv #pinn #otc #psgcf #ElPotrero #GoldMining #SilverMining #ProjectFinance #Auramet #MiningNews #PreciousMetals #MineDevelopment #MexicoMining