A working scanning cores found at the Los Reyes project. Credit: Prime Mining
Prime Mining (TSCV: PRYM) has completed an upsized private placement deal worth C$21 million ($15.4). A total of 14 million units, including the full exercise of the over-allotment option, were sold at a price of C$1.50 per unit.
Each unit consists of one common share in the company and one share purchase warrant exercisable at a price of C$2.00 until Dec. 22, 2025. The offering included subscriptions from insiders of the company for an aggregate of 2.9 million units.
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Meanwhile, Prime also issued 74,000 units at a deemed price of C$1.52 per unit to an arms-length advisor in payment of a C$112,500 service fee. Each advisory unit consists of one common share and one share purchase warrant, exercisable at a price of C$2.25 until December 22, 2025.
The net proceeds from the offering will be used by Prime for exploration and development of the Los Reyes gold-silver project in Sinaloa, Mexico.
According to the company, gold and silver were discovered at Los Reyes by the Spanish in the late 1700s and mining occurred in the area for over 150 years up until the 1950s. The Guadalupe de los Reyes underground mine opened in the late 1800s and to date is the most significant source of gold production in the district.
It is estimated to have produced 500,000-600,000 oz. of gold and 40M oz of silver at reported grades of +10 g/t gold and +500 g/t silver.