BELLINGHAM, Wash., Aug. 19, 2005 (PRIMEZONE) -- Pinnacle Developments Inc. (Pink Sheets:PNCV) announces an agreement for the acquisition of land, buildings, milling equipment, rolling stock, inventory and a 600,000 cubic meter timber tenure from a major financial institution by Cantech Fibre Corp., a wholly owned subsidiary.
Management is pleased to report to shareholders that they have secured assets with an approximate replacement value of $4,983,000 for $558,000. Included in the agreement is a timber tenure of 60,000 m3 per year cut for 10 years; with approximate earnings of $10 to $20 per m3 Pinnacle expects to meet its earnings targets called for in the company's business plan.
The land and buildings are located in the town of Fort St. James in North-Western British Columbia, Canada. Pinnacle's agreement for purchase of these assets is the first step into the production aspect of wood remanufacturing for both hardwood and softwood fiber. Management anticipates it will take 90 days to put the milling equipment into production and shipment of cants and lumber to the market will commence 30 days after start-up.
By acquiring these assets Pinnacle will strategically position itself to take advantage of the burgeoning pine beetle epidemic, the mill in Fort St. James is located in the heart of 200,000,000 m3 of infected pine forests. The Ministry of Forests is actively working with the private sector to ensure that harvesting is done without delay to capture the value of the standing timber, to prevent large forest fires and other environmental problems.
With the acquisition of the processing and harvesting operations, Pinnacle will actively pursue additional timber tenures from the Ministry of Forests to meet growing demand for wood products from China, India, Japan and the U.S.
Please visit the company's website www.pinnacledevinc.com for further information.
Certain statements contained herein are "forward looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.