FLOW-THROUGH FINANCING COMPLETED
Vancouver, BC Pinnacle Mines Ltd. (the “Company”) is pleased to announce that it has completed the brokered private placement previously announced on August 4, 2004 as amended September 7, 2004. The private placement consisted of the issuance of 678,000 “flow-through” common shares (the “Flow-Through Shares”) at a price of $0.65 per share for gross proceeds of $440,700. In addition, the Company granted to the placees a total of 678,000 share purchase warrants (the “Warrants”) to purchase up to an additional 339,000 “non-flow-through” common shares at a price of $0.75 per share on or before September 23, 2005.
A finder’s fee of $19,864 cash (plus a $4,000 corporate finance fee), 23,680 “non-flow-through” common shares (the “Agent’s Shares”) and 23,680 agent’s warrants (the “Agent’s Warrants”) of the Company was paid to Canaccord Capital Corporation in consideration for arranging the private placement, each two Agent’s Warrants entitling the holder thereof to purchase one additional “non-flow-through” common share at a price of $0.75 per share on or before September 23, 2005.
The Flow-Through Shares, the Agent’s Shares and any common shares issued upon exercise of the Warrants or the Agent’s Warrants are subject to a 4 month hold period expiring on January 23, 2005. The proceeds of the private placement will be used primarily to fund exploration work on certain properties held or optioned by the Company in the Stewart region of British Columbia.
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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