PINNACLE MINES AND ZIJIN MINING GROUP COMPLETE PRIVATE PLACEMENT OF 3,000,000 UNITS
Pinnacle Mines Ltd. (the “Pinnacle”) is pleased to announce that it has completed a non-brokered private placement consisting of 3,000,000 units (the "Units") at a price of $0.65 per Unit for gross proceeds of $1,900,000 with Zijin Mining Group Co., Ltd. previously announced on August 17, 2005. The Units consisted of one common share and one-half of one non-transferable share purchase warrant (each whole warrant a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one additional common share at a price of $0.83 per share on or before September 25, 2007.
The proceeds of the private placement will be used to accelerate Pinnacle's Silver Coin exploration program, to expand Pinnacle's activities and/or review other potential mining projects in China or elsewhere and for general working capital.
Early Warning Requirements under Applicable Securities Laws
Zijin Mining Group Co., Ltd. of No. 1 Zijin Rd, Shanhang County, China reports the acquisition of 3,000,000 common shares and Warrants to purchase a further 1,500,000 common shares in the capital of Pinnacle through its wholly-owned subsidiary, Gold Mountains (HK) International Mining Co., Ltd. The 3,000,000 common shares currently held represent approximately 19.4% of the outstanding common shares of Pinnacle. Zijin does not have any present intention to acquire ownership of or control over additional securities of Pinnacle.
A copy of the early warning report filed pursuant to the applicable securities legislation is available online at www.sedar.com under Pinnacle's Profile or may be obtained by contacting Andrew Bowering in Vancouver, BC at 604-688-7377.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company with assets 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.
For further information contact Andrew Bowering, President, at 604-688-7377 or visit Pinnacle’s website at http://www.pinnaclemines.com.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO
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