PINNACLE COMPLETES PRIVATE PLACEMENT OF UNITS
Vancouver, British Columbia: Pinnacle Mines Ltd. ("Pinnacle" or the “Company”) is pleased to announce that it has closed a non-brokered private placement (the “Private Placement”) of 45,000,000 units at a price of $0.055 per unit (the “Unit”), for gross proceeds of $2,475,000 on December 18, 2008 (the “Closing”). Each Unit consists of one common share of the Company (the “Share”) and one Share purchase warrant (the “Warrant”). Each Warrant entitles the holder to purchase one additional Share (a “Warrant Share”) of the Company at a price of $0.07 per Warrant Share during the first year and $0.15 per Warrant Share during the second year from the date of issuance. The proceeds from the Private Placement will be used for exploration and development of the Company’s mineral properties, potential acquisitions as well as general working capital.
Upon Closing, the Company paid a finder’s fee of $198,000 to Baron Global Financial Canada Ltd., equaling 8% of the gross proceeds of the Private Placement, of which $44,000 was paid in cash and $154,000 was paid in common shares (the “Finder Shares”). The Finder Shares are priced at $0.055 per Finder Share and a total of 2,800,000 Finder Shares were issued.
The Units and Finder Shares are subject to a four-month hold period that expires on April 19, 2009.
Following the Closing, Robert Wolfe was appointed as a director and Herrick Lau was appointed Chief Financial Officer of the Company. The appointment of Herrick Lau follows the departure of Mr. Gerald Sneddon as acting CFO who remains as a director of the Company.
Robert Wolfe, Director
Robert Wolfe earned a BSc. degree in physics and geology from the University of Alberta and took another year of geology at the University of British Columbia. He has been involved in numerous exploration projects for over 30 years. Before his retirement in 1992 he was a founding director and vice president of Polestar Resources Inc., a company based in Vancouver, BC.
Herrick Lau, CFO
Mr. Lau is the Vice President, Corporate Finance of Baron Global FinancialCanada Ltd. with prior experience as CFO of various listed companies and 15 years of experience in the investment banking industry. His industry practice as a finance executive in public companies involves developing financing strategy, liaising with external parties, devising business development plans and maintaining compliance with corporate governance. He is also a Chartered Financial Analyst (CFA) charter holder and has a BBA and a MA in Finance, both from Simon Fraser University.
The Company’s Board of Directors now consists of: Paul Saxton, Lawrence Dick, Gerald Sneddon, Susan Li and Robert Wolfe.
About Pinnacle
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.
For further information about this news release contact Mike Thast at 604-688-7377 or visit Pinnacle’s website at www.pinnaclemines.com for further information.
On behalf of the Board of Directors
“Paul Saxton”
President & CEO
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