Pinnacle Provides Further Details for El Potrero Finder's Fee
VANCOUVER - (TSXV: PINN, OTC: PSGCF, Frankfurt: P9J) - Pinnacle Silver and Gold Corp. ("Pinnacle" or the "Company") is pleased to announce that it has received conditional TSX Venture Exchange ("TSXV" or "the Exchange") approval for all Finder's Fee shares associated with the staged option of the high-grade El Potrero gold-silver project in Durango, Mexico. Further to Pinnacle news release of February 24, 2025, a Finder's Fee of 4% of the measurable benefit of each installment payment will be paid to Juan Jose Camacho, who is arm's length to the issuer and the vendor, corresponding to the payment schedule outlined in the Definitive Agreement (the "DA"), in accordance with TSXV Policy 5.1. In total, the Exchange has conditionally approved the issuance of 191,580 Finder's Fee shares. Up to US$298,000 in total cash payments may also be made to the Finder according to the following schedule and conditions.
The initial Finder's Fee installment was made on February 24, 2025 and comprised 71,580 shares at a deemed value of $0.05. A second share issuance of 40,000 shares, at a deemed value of $0.11, and cash payment of US$8,000 will now be made. A third installment, comprising 40,000 shares and US$30,000, will be due on February 24, 2026. Assuming the option agreement continues, US$40,000 will be payable when the plant is sufficiently upgraded and all permits received in order to commence production, or 4 years from signing the DA, whatever happens first; US$60,000 one year after commencing production or 5 years from signing the DA, whatever happens first; and US$120,000 two years after commencing production or 7 years from signing the DA, whatever happens first. A contingency issuance of 40,000 shares and payment of US$40,000 may be made at an undetermined time, upon Pinnacle establishing a Mineral Resource Estimate, as defined by National Instrument 43-101, of at least 350,000 gold equivalent ounces in the Inferred category or better.
About the Potrero Property
El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35 kilometres of four operating mines, including 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).
High-grade gold-silver mineralization occurs in a low sulphidation epithermal breccia vein system hosted within andesites of the Lower Volcanic Series and has three historic mines along a 500 metre strike length. The property has been in private hands for almost 40 years and has never been systematically explored by modern methods, leaving significant exploration potential.
A previously operational 100 tpd plant on site can be refurbished / rebuilt and historic underground mine workings rehabilitated at relatively low cost in order to achieve near-term production once permits are in place. The property is road accessible with a power line within three kilometres.
Pinnacle will earn an initial 50% interest immediately upon commencing production. The goal would then be to generate sufficient cash flow with which to further develop the project and increase the Company's ownership to 100% subject to a 2% NSR. If successful, this approach would be less dilutive for shareholders than relying on the equity markets to finance the growth of the Company.
About Pinnacle Silver and Gold Corp.
Pinnacle is focused on the development of precious metals projects in the Americas. The high-grade Potrero gold-silver project in Mexico's Sierra Madre Belt hosts an underexplored low-sulphidation epithermal vein system and provides the potential for near-term production. In the prolific Red Lake District of northwestern Ontario, the Company owns a 100% interest in the past-producing, high-grade Argosy Gold Mine and the adjacent North Birch Project with an eight-kilometre-long target horizon. With a seasoned, highly successful management team and quality projects, Pinnacle Silver and Gold is committed to building long-term, sustainable value for shareholders.
Signed: "Robert A. Archer"
President & CEO
For further information contact:
Email: info@pinnaclesilverandgold.com
Tel.: +1 (877) 271-5886 ext. 110
Website: www.pinnaclesilverandgold.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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