Prime Mining raising $19m for Los Reyes in Mexico

Los Reyes gold-silver project in Sinaloa, Mexico. Photo by former optioner Cangold.

Prime Mining (TSXV: PRYM) has announced a C$25 million ($19.8 million) bought deal private placement to advance its Los Reyes gold-silver project in Mexico’s Sinaloa state.

Desjardins Capital Markets is the sole bookrunner and co-lead underwriter; the syndicate also includes TD Securities. The underwriters are purchasing 8.5 million units at C$2.95 each; each unit includes a common share and half of a warrant. Desjardins and TD may acquire up to an additional 15% of the units purchased up to 48 hours before closing. The deal is expected to close around Apr. 27.

Existing shareholder Pierre Lassonde intends to take part in the offering.

Earlier in April, Prime announced assays for 13 core holes completed at three deposits within the eight-deposit Los Reyes project. Zapote-South returned 4.5 metres of 8.95 g/t gold and 74.5 g/t silver; drilling at Noche Buena hit 2.9 metes of 3.17 g/t gold and 141.2 g/t silver within a 39-metre interval of 0.7 g/t gold and 29.5 g/t silver.

According to CEO Daniel Kunz, these are the infill results from deposits at the western edge of Los Reyes. Prime plans to step out the existing mineralization and test resource expansion targets within the epithermal system. The company is completing a 15,000-metre drill program at Los Reyes with five drills.

Last April, Prime published an updated pit-constrained oxide resource for the site, based on a heap leach processing scenario, with 19.8 million measured and indicated tonnes grading 1 g/t gold and 26.15 g/t silver (1.31 g/t gold equivalent), containing 833,000 gold-equivalent oz. Inferred resources add 7.1 million tonnes at 0.78 g/t gold and 29.95 g/t silver (1.14 g/t gold equivalent) for a further 261,000 gold-equivalent oz.

(This article first appeared in the Canadian Mining Journal)


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