Business
Pinnacle Opts Out of Mexico
Pinnacle Opts Out of Mexico
About this update from Chesapeake Gold Corp.
[{"type":"text","content":"\nPinnacle Opts Out of Mexico\n\n\n Dec. 21, 2009 (TheNewswire.ca) -- Vancouver, B.C., December 21, 2009; Pinnacle Mines Ltd. (TSXV:PNL) (PNL:TSX-V, \"Pinnacle\" or \"the Company\") announces that it has terminated its option agreement with Chesapeake Gold Corp. (OOTC:CEPKF) (TSXV:CKG') (TSXV:CKG) to acquire an interest in its Rio Minas property located in Oaxaca, Mexico.The staged agreement entered into on May 9, 2007, allowed Pinnacle to earn an initial 51% of both the La Calavera and Rio Minas properties located 52 and 89 kms. (respectively) southeast of Oaxaca City, Mexico. Earlier this year, Chesapeake gave notice to Pinnacle that it had terminated its underlying agreement with Paradex Inc. to acquire the La Calavera property. Although Pinnacle had the option to assume the underlying agreement at the time, existing problems with the community of San Baltazar Guelavila, who hold the surface rights, mediocre assays results from Pinnacle's first drill program on the property and a looming US$400,000 payment due to the community at the time, made the decision an easy one to forgo.With respect to Rio Minas, under the terms of the ongoing option agreement with Chesapeake, the Company was still obligated to make cash payments to 2011 totaling US$1,200,000 and commit to further work expenditures totaling US$5,500,000 on the property to acquire just 51%. Pinnacle also had an option to earn an additional 19% by completing a bankable feasibility study by December 31, 2014 and providing Chesapeake with a US$3 million payment and providing production financing for either property.With the termination of the option agreement and no further assets in Mexico, the Company has taken steps to dissolve its Mexican subsidiary.About PinnaclePinnacle Mines Ltd. is a Canadian based minerals exploration company. In Canada, Pinnacle holds the Silver Coin gold prospect as its major asset and is developing and increasing the value of the Silver Coin gold resource (OTCBB:GORO) through continued drilling, exploration and on-going scoping studies. Silver Coin is located in an emerging major metals district that includes the historic Silbak-Premier gold mine and Barrick Gold's (NYSE:ABX) (TSX:ABX) famed Eskay Creek Mine.For further information about Pinnacle and this news release contact Lawrence Dick at 604-688-9588 or visit Pinnacle's website at www.pin...