PINNACLE ARRANGES BROKERED PRIVATE PLACEMENT TO RAISE UP TO $3,300,000
Vancouver, BC - Pinnacle Mines Ltd. reports that, subject to regulatory approval, it has agreed to place, through private placement, up to 5,500,000 units at $0.60 per unit to generate gross proceeds of up to $3,300,000. Each unit will consist of one common share and one-half share purchase warrant, with each whole share purchase warrant entitling the holder to acquire one additional share for a period of two years from the date of the offering at a price of $0.75 per share in the first year and $0.85 in the second year. Pinnacle has engaged Canaccord Capital Corporation (“Canaccord”) to act as agent on a commercially reasonable efforts basis in the private placement.
In connection with the private placement, Canaccord will receive a cash commission equal to 8% of the gross proceeds of the offering as well as Agents’ Warrants entitling Canaccord to acquire that number of common shares as is equal to 20% of the number of units sold under the offering, the Agents’ Warrants having the same terms as the share purchase warrants. Canaccord will also receive a corporate finance fee payable in shares.
Proceeds of the financing will be used to make the first significant payment on the Yang Wen Chong gold project in Yunnan, China, to provide exploration funds for the Yang Wen Chong project and for general working capital.
Further to Pinnacle’s news release dated April 21, 2004, wherein it announced a private placement of 1,825,000 units at $0.65 per unit, each unit consisting of one common share and one-half non-transferable share purchase warrant, with the warrants exercisable at $0.80 for a period of one year. Pinnacle has agreed to re-price the private placement and amend the terms of the warrant such that the terms are the same as those of the brokered private placement. In addition, the non-brokered private placement will be reduced to 1,000,000 units instead of the announced 1,825,000 units. The majority of this placement is being purchased by directors of Pinnacle.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company whose activities are international in scope. Its primary assets are located in both Canada and China. In Canada, Pinnacle holds several properties in Northwestern British Columbia, in proximity to numerous past and producing mines including Barrick Gold’s famed Eskay Creek Mine. In China, Pinnacle’s current focus is in Southeast Yunnan, an area being increasingly considered for its potential to host significant mineral resources including “Carlin” style gold deposits.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO
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for the adequacy or the accuracy of the content of this news release.