PNL deal with Mega China Gold Company,PNL and MTB could be in play tomorrow with Silver Coin project
Pinnacle to joint venture with Zijin on China exploration
2005-08-17 16:24 ET - News Release
Shares issued 11,039,918
PNL Close 2005-08-17 C$ 0.87
Mr. Andrew Bowering reports
PINNACLE MINES AND ZIJIN MINING GROUP ENTER COOPERATION AGREEMENT
Pinnacle Mines Ltd. has entered into a co-operation agreement with Zijin Mining Group Co., Ltd. of Fujian province, China. Pursuant to the co-operation agreement, the companies have agreed to terms as outlined herein.
Private placement in Pinnacle
Zijin, or one of its subsidiaries, will complete a private placement of three million units in Pinnacle at the price of 65 cents per unit, for total proceeds of $1.95-million. Each unit will consist of one common share and one-half share purchase warrant. The warrants will be exercisable by the holder for a two-year period on the basis of one whole warrant and 83 cents for each common share.
Proceeds from the financing 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.
Concurrent with the private placement, Pinnacle has agreed to appoint two members of Zijin to the board of directors of the company.
The issuance of shares, as a result of the private placement, will result in the creation of a control block, requiring the need for shareholder approval. This approval was received by shareholders at Pinnacle's 2005 annual general meeting on June 22, 2005.
Participation in mining projects in China and overseas
Zijin has agreed to select suitable projects located in China to offer to Pinnacle for joint venture. To date no specific arrangements have yet been made. If and when a specific project is determined suitable by both companies, public disclosure will be made at that time.
Pinnacle has agreed to offer Zijin a right of first refusal to directly participate in any projects it currently holds, including the Silver Coin project in Canada. In addition, Pinnacle has agreed to assist Zijin in looking for and evaluating prospective mining projects outside of mainland China for participation by Zijin together with Pinnacle.
Commenting on the co-operation agreement and the future relationship of the two companies, Zijin chairman, Chen Jing He, states, "We look forward to Zijin's future as an international mining company and Pinnacle will be one of the bridges for our goal."
Zijin, a Hong Kong Stock Exchange-listed company, Security Code No. 2899, is a comprehensive mining conglomerate in China primarily engaged in gold and copper production, processing and refining of gold, non-ferrous metals and other mineral resources, as well as, the sale of mineral products. According to its website, Zijin operates mines across China and invests in and controls 14 subsidiaries which resulted in production of approximately 420,000 ounces of gold alone in 2004. By the end of 2004 Zijin reported proven reserves of approximately 312 tonnes of gold metal, 3.45 million tonnes of copper metal, 600,000 tonnes of zinc metal and 187.89 million tonnes of iron metal. Zijin also holds exploration rights to approximately 1,612.79 square kilometres across China. Zijin reported income of 1,507,679,000 renminbi (approximately $228-million (Canadian)) in 2004, for a gross profit of 824,346,000 renminbi (approximately $124-million (Canadian)). |
