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Private Placement: Capitan Mining (TSXV:CAPT)

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The company is looking to raise gross proceeds of up to $3.2 million from the placement of up to 16 million shares priced at $0.20 per share.

Additional Information:

Company: Capitan Mining
Stock Symbol: TSXV: CAPT
Date Published: Apr 6, 2021
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Capitan Mining has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $3.2 million from the placement of up to 16 million shares priced at $0.20 per share.

The shares, which began trading on September 10th, are currently trading at $0.31.

Net proceeds will be used to advance drilling and work programs at the Peñoles Gold & Silver Project in addition to funding working capital and general corporate expenses.

The Peñoles Project includes an oxide gold prospect, referred to as El Capitan, and two historic silver mines located in the historic Peñoles Mining District of Durango, Mexico.

The financing is led by a strategic investment of $1.6 million Michael Gentile, CFA which will increase his position to 15.3%.

From 2003 to 2018 he worked as a professional money manager at Formula Growth Ltd., an independent investment management firm established in Montreal in 1960 with a long-term track record of creating investor wealth.

Mr. Gentile retired from full time money management in October 2018, and subsequently has remained a very active investor in the mining space owning significant top 5 stakes in over 10 small cap-mining companies.

Michael Gentile, CFA, stated: "I'm very pleased to make this strategic investment in Capitan Mining. From my perspective Capitan with its current market cap of C$8.5 million is a deeply undervalued story. With a strong in-country Mexican focused management team that has significant experience in the discovery, expansion and building of heap leach oxide assets in Mexico, Capitan is well positioned to advance the Peñoles Gold & Silver Project in Durango, Mexico. Management has the potential to create significant value for its shareholders going forward."

Alberto Orozco, CEO, stated: "We are excited to welcome Mr. Gentile, as a strategic investor, to our company. Mr. Gentile has a tremendous track record for identifying high quality investment opportunities in the mining sector and we are pleased to have him as a partner. We believe this financing will be an inflection point for our company as it allows us the opportunity to continue to expand the mineralized envelope at the Capitan gold oxide zone, which remains open in multiple directions and at depth. In addition, we plan to advance and drill test other gold-silver targets at the Peñoles Project, highlighting the scale and prospectivity of this great opportunity."

Based on only 10,000 meters of drilling, a NI 43-101 Technical Report dated January 2020, showed 305 thousand ounces of gold at 0.458 grams per tonne gold at El Capitan, and 15 thousand ounces of silver at 62.3 grams per tonne silver at Jesus Maria.

These mineral resources occurred within a maximum depth of 150 meters below surface.

Last fall, the company started the first phase of its drill program, to include 6,000 meters of reverse circulation drilling, focusing primarily on step-out holes on the gold mineralization at the Capitan Hill gold zone to test the expansion of the current inferred resource.

Following 17 holes previously reported, on March 8th the company reported on the first 3 holes of the 2021 season.

Hole CARC-19 successfully intersected the main Capitan hill zone starting at 129 meters, returning 33.5 meters of 0.4 g/t gold equivalent, which was significantly wider and higher grade than the intersection reported in historic hole CDHH-12-22, suggesting that mineralization is improving at depth.

The company is awaiting assays for an additional 3 holes.

For more information, please visit the company’s website at, contact Alberto Orozco, CEO, or Raffi Elmajian, Corporate Communications, at 778-327-6671 or by email at

I’m Megan Edwards for Investmentpitch Media