On April 6th, Prime Mining (PRYM.V) released more assay results from its 15,000 meter phase I drill program at the Los Reyes gold-silver project in Mexico’s Sinaloa state where the company is executing on a five rig drill program.  The drill program uses diamond drill rigs as in excess of 80% of the almost 500 historical drill holes were actually core holes. By completing a diamond drill program, Prime Mining will get a better understanding of the mineralized structures at Los Reyes.

Prime Mining has released a very extensive exploration update which you can read HERE. The drill holes Prime reported on were mainly infill drill holes which could potentially help the company upgrade the known resources at Los Reyes and start vectoring in on potential extensions of the known gold and silver resource. Once the company has gathered a sufficient amount of data, it will pursue a more aggressive expansion drill program using the additional details gathered from the diamond drill program.

Prime also took advantage  of the strong share price and the exploration update to raise C$25M in a bought deal offering. A total of 8.475M units will be issued at a price of C$2.95/unit with each unit consisting of one common share and half a warrant. The warrant holders will be able to exercise the warrants during a period of three years following the close date and as the warrants have a strike price of C$5, the potential proceeds from the warrant exercise will exceed C$20M (should they end up being in the money, of course).

Disclosure: The author currently has no position in Prime Mining. Prime is a sponsor of the website. Please read our disclaimer.

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