ENGLEWOOD, Colo., July 15, 2002 (PRIMEZONE) -- Pinnacle Resources, Inc. (OTC:PNRR) (Frankfurt:PIN) closed on a private sale of 1 million shares of its Anooraq Resources, Inc (CDNX:ARQ) stock. The transaction was concluded at a net sale price of US$0.50 per share and was handled by Hunter Dickinson, Inc. who forms the management team for Anooraq Resources.
After the closing of this transaction, Pinnacle still holds 4,950,000 shares of ARQ stock. Additionally, Hunter Dickinson optioned another 1 million shares of Pinnacle's ARQ stock at the same US$0.50 per share price, which should close prior to its expiration on November 15, 2002. The option agreement contains language that permits Pinnacle to borrow up to US$400,000 prior to the closing of the optioned shares.
Pinnacle plans on using the US$500,000 to pay off all current debt and accounts payable and to provide operational funds. A portion of these funds will allow Pinnacle to complete its financing obligation to Titan Processors, the South African tantalum pentoxide refinery that Pinnacle licensed with process technology it had acquired earlier this year. Further, Pinnacle's vanadium and titanium property in South Africa will require some of the funds to revise the mining plan and prepare an environmental impact report that will lead to the granting of a Mining Permit.
Glen Gamble, President of Pinnacle Resources has stated "that the infusion of this capital is very timely. It will enable the company to consider other projects for possible investment. The Board wants to find other suitable projects, in addition to the Tantalum refinery, that will generate cash flow."
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.