DENVER, July 29, 2004 (PRIMEZONE) -- Pinnacle Resources Inc. (OTCBB:PNRR) announced that its South African subsidiary, Titan Processors Ltd., has obtained a commitment from an undisclosed European chemical company to negotiate an agreement for the purchase of its tantalum production with a view to increase buying as production capacity increases. "They would like to see the Titan refinery produce a minimum of 30 metric tons of high purity tantalum pentoxide per month," said Dutch Hildebrand, Pinnacle's CFO.
Titan and its joint-venture partner, Rappa Holdings Ltd., of Germiston, South Africa, has built a plant near Johannesburg designed to produce up to 10 metric tons of refined tantalum and niobium oxides. Pinnacle previously announced that Titan had achieved production of high purity tantalum pentoxide (99.5%) but has been in an expansion mode since then.
The new modular design of the plant will allow Titan to increase its capacity with a minimum of production interruption. During the next ten months of plant expansion activity, Titan will commence production and will gradually increase to 30 tons of tantalum pentoxide per month.
The Titan tantalum refinery is the only facility in Africa that produces finished tantalum and niobium products and that has the capacity to remove undesirable contaminants or waste from African ores that were previously shipped to refineries in Europe, the United States or China. Raw ore is produced by contract miners from several countries in the southern half of Africa. In addition, the European buyer has indicated that it also will supply raw ore for processing by Titan, once the buy-sell relationship is formalized.
"Pinnacle is entering the tantalum market at a time that is seeing tantalum producer prices firming," said Dr. Jan Becker, managing director of Titan Processors. "A quotation of $150 per kilogram ($68 per pound) of tantalum pentoxide was recently reported versus a price of $100 prevailing in 2003."
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.