ENGLEWOOD, Colo., Feb. 8, 2005 (PRIMEZONE) -- Pinnacle Resources, Inc (OTCBB:PNRR) (Frankfurt:PIN:) announced that it has obtained a $1 million commitment of permanent, long-term financing. "The financing will be a combination of equity and non-recourse debt funding that is non-toxic and minimally dilutive to the shareholders," said R.A. Hildebrand, the Company's CFO.
The financing commitment is from an undisclosed private source and falls into the category of an "angel investor" says Trig Gamble, President of Pinnacle Resources, "and who has already advanced money in excess of $100,000 to help finance the Company's expansion of its tantalum refinery in Johannesburg and further development of the Company's diamond venture on the west coast of South Africa."
Additional funding from this financial source is expected to complete in a few weeks in the amount of $500,000 and an additional $400,000 will be available on an as needed basis. Funding received from this financing effort will be used in part to cover Pinnacle's operating overhead but will largely go to supplement anticipated cash flow from the tantalum processing plant. The tantalum plant expansion is ahead of schedule and currently requires more expenditure than anticipated cash flow. Application of the funding will continue to expedite plant expansion of the tantalum refinery's capacity. Additionally, some of the funding will be dedicated to the diamond recovery venture to see it through to its successful operation.
Additional information on Pinnacle Resources, Inc. is available on the company's website at http://www.pnrr.net.
This news release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements include expressions of beliefs, expectations, hopes, or intentions regarding the future, which may or not come to pass. It is important to note that actual results may differ from those expressed in such a forward-looking statements. Although Pinnacle believes its properties have potential, they are in early stages of exploration or development. There can be no assurance that if identified, any resource might be economically extracted. If additional projects are acquired, there can be no assurance of any economic benefit of cash flow to the company.