New Financing to Boost Peñoles Gold-Silver ProjectBy Paloma Duran | Mon, 05/10/2021 - 12:48
Capitan Mining (Capitan) announced it has closed a US$3.2 million non-brokered private placement, which will be used to further develop its Peñoles Project in Durango.
To close the deal, Capitan had to issue 16 million common shares at C$0.20 (US$0.16) each, which gave it a gross profit of C$3.2 million (US$2.63 million). The strategic investment was provided by Michael Gentile, CFA, and will be used primarily to further explore and develop the Peñoles project and for capital and corporate purposes.
Peñoles has an oxide gold prospect, El Capitan, and two silver mines, Jesus Maria and San Rafael, located in the historic Peñoles Mining District. “The project has multiple mineralized vein systems, fault zone structures, poly-metallic skarns and silicified low-temperature gold-rich volcaniclastics,” reported the company.
In an interview with MBN, the CEO of El Capitan, Alberto Orozco, said Mexico needs more quality projects that have a certain degree of maturity and can be developed into mines. Peñoles meets these conditions and has a strong exploration potential thanks to its 2,200ha of property with other targets that can add mineralized zones. Orozco explained that currently the inferred mineral resource has been estimated for an open pit but the company has intercepted high grades that show potential for an underground resource. “Our immediate goal is to expand the resource. Peñoles has the potential to significantly increase the resource in the short term,” said Orozco.
In March, the company released the results of its 6,000m drill program at the El Capital gold zone, demonstrating that all holes returned gold oxide mineralization in significant widths, the 33.5m intersection of 0.4 g/t of gold equivalent and the extent of mineralized zones along the strike.
In a recent press release, Orozco said the company is excited about Gentile's strategic investment, with which it will advance drilling and development programs at Peñoles. He also highlighted that the results from the gold oxide zone are very encouraging as they show opportunities to grow resources.
Before the announcement of the private placement Gentile had 258,500 common shares of the company and before its completion, the company controlled 1.16 million common shares, about 3 percent of the company's common shares on a non-diluted basis. After the closing of the private placement, Gentile owns 9,16 million common shares, which is 17.03 percent of El Capitan's common shares on a non-diluted basis.