Prime Announces Completion of June Warrant Exercise
VANCOUVER, British Columbia, June 17, 2025 (GLOBE NEWSWIRE) -- Prime Mining Corp. ("Prime" or the "Company") (TSX:PRYM) (OTCQX:PRMNF) (Frankfurt: O4V3) announces that 97% of its $1.10 warrants due June 12, 2025 have been exercised, which, including the exercise of certain options, have increased Prime's cash balance to almost $33 million dollars as of today. Proceeds will contribute to the advancement of Prime's wholly-owned Los Reyes gold-silver project ("Los Reyes" or the "Project") located in Sinaloa State, Mexico.
Scott Hicks, CEO commented, "We are delighted to see the confidence of warrant-holders in the Los Reyes Project reflected in this warrant exercise. With our cash position now at approximately $32.9 million, we are very well capitalized to deliver the upcoming Preliminary Economic Assessment, expected in the third quarter, and to advance our other technical programs through the end of 2026. We would like to thank our core shareholder group, led by Pierre Lassonde, for their continued support of Prime."
2025 Outlook
The Company plans to continue its success-based approach to exploration to further identify new prospective targets, expand the existing resource, and infill drilling. Additional work will include geological mapping and geochemical sampling to identify further discovery areas.
On January 28, 2025, drilling was paused in response to a deterioration in the security situation in parts of Sinaloa, including the Los Reyes area. This pause is not currently expected to impact the Company's ability to drill a minimum 40,000m program over 12-months from the recommencement of drilling. Six drill rigs remain on site and drill contractors are on standby to resume drilling as soon as security improves. The Company will continue to work with local authorities to monitor the current situation.
Planned fiscal 2025 exploration will focus on:
Extending the high-grade Z-T Area shoots that remain open at depth, as well as along strike, both north and south.
Expanding the known high-grade mineralization at Guadalupe East.
Increasing the Central Area resource through additions southeast at Noche Buena and its connection to San Miguel East.
Generative target drilling of high-grade intercepts at Las Primas, Fresnillo and Mariposa to further grow these emerging resources, as well as other target discovery areas to demonstrate the significant resource expansion potential at Los Reyes.
Project activities are also planned to include:
Preliminary Economic Assessment completion: Further refine metallurgical, geotechnical, mine planning and development parameters for project development, including process and underground mining optimization, infrastructure assessment and permitting requirements, targeting Q3 2025 completion.
Community Engagement: Continue to engage with and support local ejidos (communities) through educational, community and environmental programming, access (road) improvements and infrastructure development. Prime continues to sponsor and benefit from a strong geologist intern program, supporting geology students from local colleges and universities.
Figure 1, Los Reyes Trends and Exploration Targets
About the Los Reyes Gold and Silver Project
Los Reyes is a high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa State, Mexico. On October 15, 2024, Prime announced an updated multi-million-ounce high-grade open pit and underground resource based on exploration drilling up to July 17, 2024. Since acquiring Los Reyes in 2019, Prime has spent more than $64 million on direct exploration activities and has completed over 221,000 metres of drilling to date. The Company is targeting the delivery of a PEA by the end of Q3, 2025 that will highlight a high return, high margin, low capital and long-life project at Los Reyes.
October 15, 2024 Resource Statement1,2
(based on a $1950/oz gold price, $25.24/oz silver price, economic-constrained estimate)
Mining Methodand Process
Class
Tonnage(kt)
Gold Grade (g/t)
Gold Contained(koz)
Silver Grade(g/t)
Silver Contained(koz)
Open Pit - Mill
Indicated
24,657
1.13
899
35.7
28,261
Inferred
7,211
0.89
207
42.8
9,916
Underground
Indicated
4,132
3.02
402
