Buys balance of Kansas & past producer Summit Lake
Trading Symbols: TSX.V-PNL
and O7M - Frankfurt Stock Exchange
VANCOUVER, June 12 /CNW/ - Pinnacle Mines Ltd. ("Pinnacle") and Tenajon
Resources Corp (TSX-V:TJS) ("Tenajon") are pleased to announce that they have
closed the transaction announced on April 21, 2008 and Pinnacle has now
purchased Tenajon's wholly owned subsidiary, 0781639 B.C. Ltd. (the
"Corporation"). The Corporation holds an undivided 40% ownership interest in
and to the Kansas Claim and a 100% ownership interest in and to the Summit
Lake property. Pinnacle purchased the Corporation for an aggregate deemed
purchase price of approximately $3,015,000 (the "Acquisition"). The Kansas
Claim and the Summit Lake property are both located near Stewart, British
Columbia. Pinnacle now owns a 70.6% interest in and to the Kansas Claim and
100% of the Summit Lake Property. The remaining 29.4% undivided interest in
the Kansas Claim is owned by Mountain Boy Minerals Ltd.
Based on a NI 43-101 compliant Technical Report on the Silver Coin
Property (which encompasses the Kansas Claim) prepared by Minefill Services,
Inc. of Seattle, WA in April 2007, upon completion of the purchase, Pinnacle
will have control over 70.6% of 364,307 ounces of gold resources in the
measured and indicated category (7,597,054 tonnes grading 1.492 g/t gold) plus
719,599 ounces of gold resources in the inferred category (10,776,659 tonnes
grading 2.077 g/t gold) on the Kansas Claim and now own 100% of the past
producing Summit Lake gold property. On the entire Silver Coin property,
Pinnacle controls approximately 67.8% of 423,003 ounces of gold resources in
the measured and indicated category (9,707,497 tonnes grading 1.355 g/t gold)
plus approximately 65.8% of 947,988 ounces of gold resources in the inferred
category (15,947,629 tonnes grading 1.849 g/t gold).
D. Bruce McLeod, President and CEO of Tenajon stated "We are pleased to
complete this transaction which has successfully consolidated the ownership of
two highly prospective gold assets within the Stewart camp, and will allow
Tenajon shareholders to directly benefit from further success in exploring and
developing the Silver Coin and Summit Lake properties."
"We are very happy to complete the acquisition and excited about
advancing the further potential of both projects. As announced by Pinnacle on
May 15th, a $2.5 Million exploration program is currently underway on Silver
Coin including Kansas which is aimed at expanding the known resource" said
Paul Saxton, President and CEO of Pinnacle Mines Ltd.
Pinnacle has issued 13,500,000 fully paid shares of Pinnacle ("Pinnacle
Shares") and shall reimburse Tenajon up to $200,000 in cash in respect of
reclamation deposits, exploration costs incurred by Tenajon on the Summit Lake
property and certain other expenses. Under the terms of the Acquisition,
Tenajon is required to distribute the Pinnacle Shares to its shareholders on a
pro-rata basis by way of a plan of arrangement (the "Arrangement"). The
Pinnacle Shares are subject to a four month hold period expiring October 12,
2008. Tenajon has granted to the management of Pinnacle a voting proxy on all
of the Pinnacle Shares, which shall expire on completion of the Arrangement.
Tenajon has also granted Pinnacle an option to purchase the 3% net smelter
royalty held by Tenajon on the Summit Lake property by payment to Tenajon of
$115,000 in cash.
Tenajon shareholders shall receive approximately one share of Pinnacle
for each 4.68 shares of Tenajon which they hold based on the current number of
Tenajon shares issued and outstanding. The number of shares to be distributed
will be subject to an adjustment based on the actual share structure at the
record date of October 13, 2008.
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed by A. Alex Walus, M. Sc., P. Geo. of Pinnacle
Mines Ltd., a Qualified Person as defined by NI 43-101.
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.
On Behalf of the Board of Directors
President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of the content of this
For further information:
For further information: about this news release contact John Van Duzen
at (604) 688-7377. For more information on Silver Coin and the Kansas Claim or
to view the entire April 27, 2007 Technical Report on the Silver Coin
Property, visit Pinnacle's website at www.pinnaclemines.com