COMPANY ANNOUNCES $6.9 MILLION PRIVATE PLACEMENT
Vancouver, BC – Pinnacle Mines Ltd. ("Pinnacle" or the “Company”) reports that, subject to regulatory approval, it has agreed to complete a private placement for gross proceeds of up to $6,900,000. The placement will consist of up to 6,000,000 units of the Company at a price of $1.15 per unit, each unit consisting of one share and one half of a share purchase warrant. One whole warrant will entitle the holder to purchase an additional share in the Company at the price of $1.40 for one year.
Canaccord Capital Corporation ("Canaccord" or the "Agent") has been engaged as agent to complete up to 1,000,000 units of the placement on a commercially reasonable efforts basis and has been granted an over-allotment option for a further 500,000 units, exercisable prior to closing. The Company will pay the Agent a cash commission of 8.0% of the gross proceeds raised by the Agent upon closing. On the closing date of the offering, the Agent will be granted agent's warrants equal in number to 10% of the aggregate number of total units sold at an exercise price equal to $1.40. Each agent's warrant will be exercisable into one common share for 12 months from closing. Canaccord will also be paid a corporate finance fee of 28,000 units, a one time administrative fee of $5,000, and all reasonable costs and expenses related to the offering.
The balance of the private placement will be completed on a non-brokered basis. Pinnacle may pay finders' fees of up to 8%, payable in cash or units, or a combination thereof.
The placement is subject to a number of conditions, including regulatory acceptance. The units will be subject to a four-month hold period following the closing.
Proceeds of the financing will be used for exploration and development of the Company's mineral properties, potential acquisitions, as well as for working capital.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company with assets in Canada and China. In Canada, Pinnacle holds several properties in Northwestern British Columbia, in proximity to numerous past and producing mines including 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 www.pinnaclemines.com.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO
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