PRIVATE PLACEMENTS COMPLETED FOR NET PROCEEDS OF APPROXIMATELY $2,041,000
Vancouver, BC Pinnacle Mines Ltd. (the “Company”) is pleased to announce that it has completed the brokered private placement previously announced on September 16, 2004 as amended November 2, 2004. The private placement consisted of 2,600,000 Units at a price of $0.60 per Unit for net proceeds of approximately $1,442,000. Each Unit consisted of one common share (“Shares”) and one-half share purchase warrant, one whole warrant being exercisable into an additional common share at $0.75 per share in the first year and $0.85 per share in the second year (“Warrants”). Canaccord Capital Corp. acted as Agent in respect of this financing.
A commission of approximately $110,000 cash and 24,952 units was paid to the Agent in consideration for completing the private placement. In addition, the Agent received 390,000 Agent’s Warrants exercisable on the same terms as the Warrants issued in the private placement. The Agent was also paid a 60,000 unit corporate finance fee.
The Shares, the Agent’s Shares, the corporate finance fee 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 April 1, 2005.
The proceeds of the private placement will be used as follows:
- $300,000 as a reserve to fund property purchase payments in China or elsewhere;
- $300,000 as a reserve towards future exploration work in China;
- $500,000 as a reserve towards future exploration work on Pinnacle’s mineral interests in the Stewart area of British Columbia; and
- $342,000 for general working capital purposes.
The Company also reports that it has completed the non-brokered private placement previously announced September 16, 2004. The private placement consisted of 1,040,000 units, each unit having the same terms as the Units issued in the brokered private placement. After payment of a finder’s fee totalling $25,000, the Company realized net proceeds of $599,000. Directors of the Company purchased 941,500 units. The shares and any common shares issued upon exercise of the warrants are subject to a 4 month hold period expiring on March 9, 2005.
Proceeds from the non-brokered private placement were used to fund the initial property payment for Yang Wen Chong in Yunnan, China and general working capital purposes.
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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