PINNACLE REDUCES SIZE OF BROKERED PRIVATE PLACEMENT - CHINESE PARTNER EXTENDS PAYMENT DATE ON YANG WEN CHONG
Vancouver, BC - Pinnacle Mines Ltd. reports that further to a news release dated September 16, 2004, wherein Pinnacle announced it 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, Pinnacle now reports the private placement will be reduced to 2,500,000 units at $0.60 per unit for gross proceeds of $1,500,000. 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. Canaccord Capital Corporation (“Canaccord”) will act as agent 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 15% 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 units.
The proceeds of the financing will primarily be used for working capital, general corporate purposes and exploration programs conducted on Pinnacle’s properties in Northwestern British Columbia and China.
In addition, Pinnacle reports that it has been granted an extension on the first significant property payment on the Yang Wen Chong gold project in Yunnan, China. Yunnan Geology and Mineral Resources Co., Ltd. (YGM) have granted Pinnacle and extension until December 30, 2004 to make the payment. Pinnacle will continue to work with YGM on Yang Wen Chong in the areas of the purchase price and the payment schedule. Company representatives will be traveling to China in mid-November in respect of these matters.
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 the Silbak-Premier Mine and 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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of the content of this news release.