COMPANY COMPLETES PRIVATE PLACEMENT OF UNITS
Vancouver, BC Pinnacle Mines Ltd. ("Pinnacle" or the "Company") is please do report that it has completed its private placement previously announced in its news releases dated May 9, 2006 and May 15, 2006. The private placement was conducted on both a brokered and non-brokered basis.
Canaccord Capital Corporation ("Canaccord" or the "Agent") was engaged as lead agent on the brokered portion of the financing (the "Brokered Financing"). The Agent placed 1,705,000 units ("Units") priced at $1.15 per Unit. Each Unit consists of one common share and one half of one common share purchase warrant, each whole Warrant entitles the holder to purchase one additional share in the Company at the price of $1.40 until July 7, 2007.
Pinnacle paid the Agent a commission of 8.0% of the gross proceeds of the offering, paid in a combination of cash and Units, at the election of the Agent. In addition, the Agent received a corporate finance fee of 40,000 Units and agent's warrants equal in number to 10% of the aggregate number of Units sold under the Brokered Financing, each such warrant is exercisable for an additional share in the Company at the price of $1.40 until July 7, 2007.
In addition, Pinnacle has also closed the non-brokered portion of the financing (the "Non-Brokered Financing") previously disclosed pursuant to which the Company placed 1,099,021 Units. The Company has paid a finder’s fee to three finders in the form of a cash commission equal to 8% of the gross proceeds received from the sale of the Units which that finder arranged.
The Units are subject to a hold period that expires on November 8, 2006.
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.
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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