Prime Mining Corp Enhances Finances to Advance Los Reyes Gold-Silver Project
- Prime Mining Corp. raised approximately $33 million by exercising 97% of its $1.10 warrants to advance the Los Reyes project.
- The funds will support a Preliminary Economic Assessment (PEA) scheduled for the third quarter of 2025, targeting high returns.
- Prime Mining plans to resume its 40,000-meter drilling program once conditions improve, focusing on resource expansion and exploration.
Prime Mining Corp Strengthens Financial Position for Los Reyes Project Advancement
Prime Mining Corp. announces a significant milestone with the successful exercise of 97% of its $1.10 warrants, which are set to mature on June 12, 2025. This development bolsters the company’s cash reserves to approximately $33 million, a critical financial boost aimed at propelling the Los Reyes gold-silver project in Sinaloa, Mexico. CEO Scott Hicks expresses gratitude to core shareholders, especially Pierre Lassonde, whose ongoing support underscores a strong belief in the project's potential. This robust financial backing positions Prime Mining to advance its operations and explore new opportunities within the mining sector.
The funds will primarily support the upcoming Preliminary Economic Assessment (PEA), anticipated in the third quarter of 2025. This assessment is crucial for delineating a high-return, high-margin mining operation at Los Reyes, which has garnered significant interest due to its historic recoveries estimated at 1 million ounces of gold and 60 million ounces of silver from past operations. Since acquiring Los Reyes in 2019, the company has invested over $64 million in exploration, completing more than 221,000 meters of drilling. This investment reflects Prime Mining's commitment to unlocking the full potential of the project as it continues to lay the groundwork for future success.
Despite a temporary pause in drilling activities due to security concerns in the region, Prime Mining remains poised for a strong operational rebound. The company plans to resume its ambitious 40,000-meter drilling program once conditions permit, with six drill rigs currently on standby. Current exploration efforts focus on identifying new targets and expanding existing resources through geological mapping and geochemical sampling. With quality assurance protocols established for drill core sampling and rigorous testing conducted by accredited laboratories, Prime Mining is committed to maintaining high standards in its exploration activities as it seeks to maximize resource potential at Los Reyes.
In addition to its exploration and assessment initiatives, Prime Mining emphasizes that its mineral resource estimate, as of October 15, 2024, adheres to CIM standards. These standards highlight the importance of demonstrating economic viability for mineral resources, which Prime Mining aims to achieve through diligent exploration and operational planning. The company's strategic focus on advancing the Los Reyes project reflects an optimistic outlook for the future of gold and silver mining in Mexico.