COMPANY COMPLETES PRIVATE PLACEMENT OF UNITS
Vancouver, BC - Pinnacle Mines Ltd. ("Pinnacle" or the “Company”) is pleased to announce that further to its news release dated February 14, 2008, the brokered private placement (the "Offering") arranged through Haywood Securities Inc. (the “Agent”) has closed. The Agent placed 3,500,000 units (“Units”) priced at $0.20 per Unit. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable for one additional common share on or before April 3, 2009 at a price of $0.30
Pinnacle paid the Agent a cash commission of 7.5% of the gross proceeds of the Offering. In addition, the Agent received compensation options equal to 10.0% of the Units sold, with each compensation option exercisable for one Unit at a price of $0.20 on or before April 3, 2009.
In addition, Pinnacle has also closed a portion of the non-brokered offering (the "Non-Brokered Offering") previously disclosed pursuant to which the Company placed 1,215,000 Units, on a non-brokered basis concurrently with the Offering. The Company has paid aggregate finders' fees in the amount of $17,100 in cash and 80,250 compensation options, with each compensation option exercisable for one Unit at a price of $0.20 on or before April 3, 2009, to Ascenta Finance Corp. and Canaccord Capital Corporation in respect of Units which they arranged.
The Units and compensation options are subject to a four-month hold period that expires on August 4, 2008.
Pinnacle Mines Ltd. is a Canadian based mineral exploration company with assets in Canada and Mexico. In Canada, Pinnacle holds 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 Mexico, Pinnacle has an option with Chesapeake Gold Corp. to acquire 70% of its La Calavera and Rio Minas projects in the state of Oaxaca.
For further information about this news release contact John Van Duzen at 604-688-7377 or visit Pinnacle’s website at www.pinnaclemines.com for further information.
“Paul Saxton”
President & CEO
The securities offered hereby have not and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the 1933 Act) unless the securities have been registered under the 1933 Act, or are otherwise exempt from such registration.
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for the adequacy or the accuracy of the content of this news release.