Aug 28 2014
Pinecrest Resources Ltd. ("Pinecrest" or the "Company") is pleased to provide an update on the private placement and acquisition of a 100% legal and beneficial interest in the Enchi gold project located in Ghana (the "Project") from Edgewater Exploration Ltd. ("Edgewater") which holds 51% of the Project and Red Back Mining Ltd. ("Red Back"), a wholly-owned subsidiary of Kinross Gold Corporation, which holds 49% of the Project (collectively, the "Transaction").
On completion of the Transaction, Pinecrest will own a 90% interest in the Project, taking into account the 10% interest held by the Government of Ghana. Details of the Transaction are set out in the news release dated May 22, 2014. Further to Pinecrest's news releases dated May 22, 2014 and July 16, 2014, the Company wishes to provide the following updates on the Transaction and the private placement:
- At the Pinecrest Annual and Special Meeting of Shareholders held on August 15, 2014, the shareholders of the Company approved all matters put before the Meeting, including the necessary approval to proceed with the acquisition of the Project.
- The concurrent non-brokered private placement is oversubscribed and has been increased to $3.6 million.
- Drafting of definitive acquisition agreements with each of Edgewater and Red Back, as well as the definitive strategic alliance agreement with Sandstorm Gold Ltd., as previously announced, are well advanced and the Company expects to finalize and execute these agreements shortly.
- Pinecrest currently anticipates that the acquisition of the Project and the concurrent private placement will close during September, 2014, subject to the execution of final documentation, regulatory approval and approval of the Minister of Mines in Ghana.
Edward Farrauto, President and CEO of Pinecrest stated: "The acquisition of a 100% interest in the Enchi Gold Project and the $3.6 million financing is nearing completion with all definitive agreements in their final stages. We are pleased to have the support of Pinecrest shareholders, Sandstorm, Edgewater and Red Back in this transaction, which when closed will transform Pinecrest into a well-financed, African-focused, development-stage gold company. On completion of the Transaction, Pinecrest will have approximately 54.9 million shares issued and outstanding and we will be pleased to welcome Sandstorm as an 18% shareholder and Red Back as a 19.9% shareholder of the Company."
About Pinecrest Resources Ltd.
Pinecrest Resources Ltd. is a mineral exploration and mine development company focused on creating shareholder value through the development of quality precious metal projects. On completion of the Transaction with Edgewater, Red Back and the strategic alliance with Sandstorm, Pinecrest will be focused on the advancement and development of the Project in Ghana. Pinecrest has an experienced exploration, mine building and operating team with a proven track record.
On behalf of the Board of
PINECREST RESOURCES LTD.
Edward Farrauto, President and CEO