Pinnacle cuts deal for production finance for El Potrero

Pinnacle Silver and Gold has secured a $5 million financing commitment from metals trader Auromet for its El Potrero gold and silver project in Mexico. CEO Bob Archer told the Vox Markets Podcast that the deal is a "huge milestone" because the funding is structured as a non-dilutive facility — likely an offtake arrangement — meaning it will not require issuing new shares. The money is expected to cover the entire path to production, including refurbishing an existing mill on site, extending a power line, rehabilitating underground workings, and providing working capital.

Archer explained that the relationship with Auromet goes back roughly two decades. The trader had already participated in Pinnacle's last financing and had an offtake agreement with the company's previous project, Great Panther. "That showed us right off the bat that they were gonna be supportive," Archer said. The $5 million facility is structured as a drawdown, meaning Pinnacle can access the funds as needed — for example, to place deposits on long-lead-time items like ball mills, crushers, and the Merrill-Crowe circuit, or to move quickly once the electrical commission approves the power line extension.