Prime Mining Secures Major Funding for Los Reyes Project Growth
Prime Mining Corp. Boosts Cash Reserves with Successful Warrant Exercise
In a notable development for Prime Mining Corp., approximately 97% of the $1.10 warrants due on June 12, 2025, have been exercised. This successful exercise, along with some options, has significantly improved the company’s cash situation, bringing it to nearly $33 million. This influx of funds will support the advancement of the Company’s wholly-owned Los Reyes gold-silver project, a promising venture located in Sinaloa State, Mexico.
CEO Scott Hicks Reacts to Warrant Exercise Outcome
Scott Hicks, the CEO of Prime, expressed satisfaction regarding the strong support from warrant-holders, reflecting their confidence in the Los Reyes Project. With the cash reserves now standing at around $32.9 million, Prime is well-positioned to deliver the highly anticipated Preliminary Economic Assessment (PEA) in the near future, slated for the third quarter. The funds will also facilitate the continuation of other technical programs throughout 2026. Hicks extended gratitude to core shareholders, spearheaded by Pierre Lassonde, for their robust backing.
Strategic Plans for 2025
Looking ahead, Prime Mining intents to maintain a success-driven exploration approach. The focus will be on identifying new targets, expanding existing resources, and executing infill drilling. This groundwork will involve comprehensive geological mapping and geochemical sampling aimed at uncovering additional prospective areas.
It is important to note that drilling activities were temporarily halted on January 28, 2025, due to worsening security concerns within some regions of Sinaloa, including the vicinity of Los Reyes. However, this suspension is expected to not hinder the planned drilling activities, which aim to complete a significant 40,000 meters program within a year after drilling resumes. Six drill rigs are currently stationed on-site, with contractors ready to leap back into action as soon as conditions improve. The Company continues to work alongside local authorities to monitor the prevailing situation.
Focus Areas for Upcoming Exploration Work
In terms of fiscal 2025, Prime Mining has outlined several key areas of exploration:
- Extending the high-grade Z-T Area shoots that remain open at depth and along strike, addressing both the northern and southern zones.
- Expanding known high-grade mineralization at Guadalupe East.
- Boosting Central Area resource contributions through further exploration to the southeast at Noche Buena and enhancing connections to San Miguel East.
- Conducting generative target drilling to grow emerging resources at Las Primas, Fresnillo, and Mariposa, showcasing significant resource expansion potential at Los Reyes.
Project Activities and Community Engagement
Upcoming activities targeting the advancement of the Los Reyes Project include:
- Completion of the Preliminary Economic Assessment: This will refine metallurgical and geotechnical parameters, mine planning, development parameters, including process and underground mining optimization, infrastructure assessments, and permit requirements, with an objective of completion by the third quarter of the year.
- Fostering Community Engagement: Continuous engagement and support for local communities will be prioritized through educational, community, and environmental initiatives, along with infrastructure enhancements. Prime remains committed to sponsoring geology students from local institutions through a robust internship program.
About the Los Reyes Gold-Silver Project
The Los Reyes Project is celebrated as a high-grade, low-sulphidation epithermal gold-silver project in Sinaloa State, Mexico. After acquisition in 2019, Prime has invested more than $64 million in exploration efforts, including over 221,000 meters of drilling. The Company is aiming to finalize its PEA by Q3 2025, outlining a project notable for its high return, low capital investment, and extended operational lifespan.
Quality Assurance and Control Procedures
At Los Reyes, drill core is primarily collected in HQ size (63.5 mm) and switches to NQ (47.6 mm) when needed. Core samples are usually 1.50 m in length, adjusted to meet geological needs. Rigorous QA/QC measures, incorporating certified reference materials and duplicates, ensure the accuracy of results.
About Prime Mining Corp.
Managed by a seasoned team of mining executives and capital market experts, Prime Mining is committed to unlocking the full potential of the Los Reyes Project. The internal capital structure and ownership foster a strong environment for material resource expansion while ensuring technical risks are effectively addressed to facilitate future project development.
Frequently Asked Questions
What did Prime Mining announce regarding warrant exercise?
Prime Mining Corp. disclosed that 97% of their $1.10 warrants set to expire in June 2025 were successfully exercised, boosting their cash reserves significantly.
What are the plans for the Los Reyes Project in 2025?
The plans include expanding the high-grade areas, drilling new targets, and completing a Preliminary Economic Assessment by the third quarter.
Who is the CEO of Prime Mining Corp.?
Scott Hicks serves as the CEO and has expressed satisfaction with shareholder support for the company’s initiatives.
What financial position does Prime Mining hold following the warrant exercise?
Post-exercise, Prime Mining has a cash balance of approximately $32.9 million, positioning them well for upcoming project development.
How is Prime Mining engaged with local communities?
Prime Mining is committed to community engagement through educational programs, environmental initiatives, and infrastructure development to support local ejidos.
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