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If you would be so kind. How in the world did you fine this turkey ?
I think it is just a matter of time and Iron Eagle begins to soar like an eagle!
I was fortunate and picked up some more shares of IEAG on Friday at $1.15. Had a 5,000 share buy in and could only get 1,000 filled.
I purchased more shares of IEAG today. It is hard to believe that the company has a little over 11 Million Shares Outstanding and ONLY 400,000 Share Float.
Iron Eagle Group (IEAG) Announces $55,000,000 of Projected Revenue for Delta
NEW YORK--(BUSINESS WIRE)-- Iron Eagle Group, Inc. (OTC:IEAG.ob - News) (“Iron Eagle”), a construction and contracting services provider in both the commercial and government markets, today announced that its recent acquisition of Delta Mechanical Contractors LLC (“Delta”) is expecting revenue and EBITDA for the twelve months ended December 2011 of $55,000,000 and $2,750,000 to $3,250,000 respectively. This projection is based upon a combination of historical performance, economic environment, and current backlog.
Delta is the leading regional subcontractor providing commercial and industrial installation of plumbing, heating, ventilation and air conditioning and fire protection services in the regions of Rhode Island, Southeastern Massachusetts and Eastern Connecticut.
“In partnership with its General Contractors, Delta has consistently won many top contracts, ranging from private sector construction such as the Mohegan Sun Casino, Flemings Steak houses, and Carnegie Abbey in Newport, Rhode Island and government contracts such as Federal Aviation Administration, Craig Army Reserve Center, and St Anne's Hospital,” commented Joseph M. LoCurto, Chairman of the Board of Iron Eagle.
About Iron Eagle Group, Inc.
Iron Eagle provides construction and contracting services in both the commercial and government markets. Iron Eagle’s management consists of business leaders in construction, government contracting, defense, finance, operations, and business development. Management has a compelling strategic plan to capitalize on the large $100 billion market opportunity in infrastructure construction created by the federal government’s stimulus package as in addition to the billions of federal funds that have been approved to be spent at the state level for projects throughout the United States. Through the experience and track records of its management team, along with a strong and diversified balance sheet, Iron Eagle believes it will have a major competitive advantage by being able to provide higher levels of construction surety bonds. Iron Eagle will further target additional growth opportunities through the highly focused bidding of federal, state, and municipal construction projects as well as working as a subcontractor to some of the multi-billion dollar prime contractors in the United States.
For more information, please visit Iron Eagle’s website at www.ironeaglegroup.com.
Iron Eagle Group (IEAG) Completes Acquisition of Delta Mechanical Contractors LLC
NEW YORK--(BUSINESS WIRE)-- Iron Eagle Group, Inc. (OTC:IEAG.ob - News) (“Iron Eagle”), a construction and contracting services provider in both the commercial and government markets, today announced that it has completed the acquisition of the membership interests of Delta Mechanical Contractors LLC ("Delta").
Averaging in excess of $50,000,000 in annual revenues over the past five years, Delta is the leading regional subcontractor providing commercial and industrial installation of plumbing, heating, ventilation and air conditioning and fire protection services in the regions of Rhode Island, Southeastern Massachusetts and Eastern Connecticut.
Bruce A. Bookbinder, Chief Executive Officer, President, and Founder of Delta, has executed a long term contract with Iron Eagle and has become Chief Executive Officer and President of Delta Mechanical Group, LLC, a 100% owned division of Iron Eagle.
“Delta is the number one subcontractor in their region, with a long history of profitability, quality work, and a tremendous reputation among its peers,” commented Joseph LoCurto, Chairman of Iron Eagle. “I was impressed by Delta’s workforce with over 100 highly qualified field employees and led by a seasoned management staff of 25 employees.”
“I was extremely impressed by Iron Eagle’s management team, industry expertise, and growth strategy,” stated Bruce A. Bookbinder, Chief Executive Officer, President, and Founder of Delta. He continued, “Delta is looking forward to working with Iron Eagle and their extensive industry relationships. They will add to Delta’s high level of customer service, increase operational efficiencies, and further joint venture and organic growth opportunities.”
“Delta represents the ideal acquisition for Iron Eagle,” commented Gary Giulietti, a member of the Board of Directors of Iron Eagle. “This furthers Iron Eagle’s mission of acquiring leading high quality construction companies and capitalizing on the $100+ billion market opportunity created by the federal government’s stimulus package as well as funds that are flowing down to the state and municipal levels for projects throughout the US. I congratulate our management team, led by Joseph LoCurto, Jed Sabio, and Jason Shapiro, on executing another milestone for Iron Eagle.”
Iron Eagle has let all other previously announced letters of intent and definitive agreements expire to allow the Company to focus more on the Delta transaction and other regional leaders and best in class construction companies.
About Iron Eagle Group, Inc.
Iron Eagle provides construction and contracting services in both the commercial and government markets. Iron Eagle’s management consists of experts in construction, government contracting, defense, finance, operations, and business development. Management has created a compelling strategic plan to capitalize on the large market opportunity created by the federal government’s stimulus package as well as funds that are flowing down to the state level for projects throughout the United States. Through the public capital markets, Iron Eagle believes it will have the access to capital to support increased needs for construction surety bonds. By executing on its growth strategy, Iron Eagle can achieve significant growth through highly focused targeting of federal, state, and municipal construction projects.
For more information, please visit Iron Eagle’s website at www.ironeaglegroup.com.
Iron Eagle Group (IEAG) Announces Changes in Corporate Management
NEW YORK--(BUSINESS WIRE)-- Iron Eagle Group, Inc. (OTCQB: IEAG) today announced that it has appointed Joseph LoCurto to the Board of Directors and Jed Sabio as Executive Vice President of Business Development.
Mr. LoCurto will be drawing upon his four decades of mergers and acquisition leadership in the construction field. Mr. LoCurto has served as a Founder, CEO, President, and COO of Regional, National, and International construction management companies, ranging from $20 million to in excess of $1.8 billion in annual revenues.
Those companies include three divisions of the multinational construction giant Skanska (Slattery, Gottlieb, and Atlantic), Gottlieb Heavy Industries, NAB Construction and GreenStar / WDF, Inc. His notable projects include the rehabilitation of Yankee Stadium, Brooklyn Bridge, Statue of Liberty, Jacob Javits Convention Center, World Trade Center, and Newtown Creek WPCP. His accomplishments in the areas of heavy public works include projects for the MTA’s New York City Transit, the New York City Department of Environmental Protection, the New York City Department of Transportation, the Dormitory Authority of the State of New York, the New York City Department of Design and Construction, and the New York City School Construction Authority. Mr. LoCurto has been an active member in the industry. He is past president of the Subcontractors Trade Association, a member of the ASME and the MOLES. Throughout his career, he has focused on employing safe practices, surrounding himself with qualified, knowledgeable people and creating profitable joint venture partnerships. Mr. LoCurto holds both Electrical and Mechanical Engineering degrees.
In addition, the Company announced the appointment of Mr. Jed Sabio as Executive Vice President of Business Development. Mr. Sabio is a financial professional with over 24 years of progressively responsible analytic and managerial positions. For the past 21 years Mr. Sabio has worked for National Grid, NYSE-listed company, and its predecessor companies (KeySpan Energy Corporation and The Brooklyn Union Gas Company), the last two years as a full-time consultant. His most recent positions at National Grid included Director of Mergers and Acquisitions and Director of Finance. In his capacity as Director of M&A he lead project valuation, coordination of extensive due diligence on all proposed investments, mergers, acquisitions, divestitures, joint ventures, start-up ventures and other related investments of the corporation and its subsidiaries, he has negotiated deal structure and remuneration, and he provide financial counsel through deal completion. In a four year period, through the acquisition of engineering, mechanical, electrical, plumbing, and general contractors, he developed National Grid’s subsidiary from an in-house $40 million operating unit to over a billion dollar highly profitable company. As National Grid exited that sector, Mr. Sabio was also charged with de-consolidating and the divesting of nearly 30 companies that comprised the business unit. Mr. Sabio holds a MBA in finance from St. John’s University.
“Iron Eagle represents a tremendous opportunity in the current economic environment,” stated Joseph LoCurto, acting Chairman for the Board of Directors for Iron Eagle Group. He added: “I am looking forward to actively sharing my experience with the Iron Eagle team as the Company continues to implement and execute its acquisition and organic strategies.”
“I believe that Iron Eagle is the right company in the right place at the right time,” commented Jed Sabio, Executive Vice President of Business Development for Iron Eagle Group. He further added, “I am confident that there is no other company as uniquely positioned as Iron Eagle for success.”
Iron Eagle also announced the appointment of Jason M Shapiro as Chief Financial Officer. Mr. Shapiro is a founder and Director of Iron Eagle. The Company also announced that these management changes shall be replacing Michael Bovalino as CEO, and Eric Hoffman as CFO, who shall be pursuing other personal interests.
About Iron Eagle Group, Inc.
Iron Eagle provides construction and contracting services in both the commercial and government markets. Iron Eagle’s management consists of experts in construction, government contracting, defense, finance, operations, and business development. Management has created a compelling strategic plan to capitalize on the large market opportunity created by the federal government’s stimulus package as well as funds that are flowing down to the state level for projects throughout the United States. Through the public capital markets, Iron Eagle believes it will have the access to capital to support increased needs for construction surety bonds. By executing on its growth strategy, Iron Eagle can achieve significant growth through highly focused targeting of federal, state, and municipal construction projects.
For more information, please visit Iron Eagle’s website at www.ironeaglegroup.com.
I have began accumulating a position in Iron Eagle Group.
September 20 , 2010
Iron Eagle Group (IEAG) Engages Leading Middle Market Invetment Bankers
New York, NY – September 20, 2010 - Iron Eagle Group, Inc. (OTCQB: IEAG) today announced that a New York based leader in middle market investment banking, has been retained as the Company’s Investment Bankers to raise $25 million for acquisitions and working capital.
The investment bank is a full service boutique brokerage operation with middle market corporate
finance, research, and valuation services. They are also a leader in investment banking and
sourcing acquisition capital through its broad institutional and retail networks. With over 200
registered representatives in 8 corporate locations. The investment bank also actively manages
over $2 billion of retail customer assets, has clients in all 50 states and overseas, and is a member
of the FINRA/SIPC.
Mike Bovalino, Chief Executive Officer of Iron Eagle Group, commented that “We were
immediately impressed by the professionalism, expertise, and track record that the firm and its
team exemplify. We believe that by bringing them into the Iron Eagle Team, we will continue to
execute and implement our acquisition strategy to become a leading infrastructure construction
and services company.”
This press release is only an announcement and is not meant to constitute and offer to buy or sell
securities. There are many risks with the proposed offering and there is no guarantee that it will
be successful. The Company will issue an 8K upon the closing of a financing detailing all the
material terms.
About Iron Eagle Group, Inc.
Iron Eagle provides construction and contracting services in both the commercial and
government markets. Iron Eagle’s management consists of experts in construction, government
contracting, defense, finance, operations, and business development. Management has created a
compelling strategic plan to capitalize on the large market opportunity created by the federal
government’s stimulus package as well as funds that are flowing down to the state level for
projects throughout the United States. Through the public capital markets, Iron Eagle believes it
will have the access to capital to support increased needs for construction surety bonds. By
executing on its growth strategy, Iron Eagle can achieve significant growth through highly
focused targeting of federal, state, and municipal construction projects.
For more information, please visit Iron Eagle’s website at www.ironeaglegroup.com
August 26 , 2010
Iron Eagle Group (IEAG) Announces Satisfaction of Performance Obligations Per January Exchange Agreement
New York, NY – August 26, 2010 - Iron Eagle Group, Inc. (OTCQB: IEAG) today announced that the remaining performance obligation required under the January 2010 exchange agreement between Iron Eagle Group, a Nevada corporation, its shareholders, and Iron Eagle Group, Inc. (formerly Pinnacle Resources, Inc.), a Delaware corporation, has been satisfied.
The consideration for the transaction, the share exchange, was completed in January. At that time shareholders of Iron Eagle Nevada exchanged their shares for shares of Iron Eagle (formerly Pinnacle Resources). As part of the agreement, i) the shares previously held in escrow have been released and ii) Glen Gamble, former chairman of the board and Dutch Hildebrand, former director and chief financial officer have resigned as officers and directors of Iron Eagle.
Glen Gamble commented that “it was the right time to hand off the baton to the new Iron Eagle management team. They are indeed professionals and well qualified to implement the business plan for going forward into the heavy construction arena”.
Dutch Hildebrand added, “Iron Eagle’s new, innovative business plan will attract interest from the investing public, and that its new well-known officers and directors will enhance Iron Eagle’s access to the investment banking community.”
“This is a big day for Iron Eagle. It provides further evidence that Iron Eagle has continued to deliver on its promises and continues to build momentum,” commented Jason Shapiro, co-founder of the former Iron Eagle Nevada and current director, and executive vice president of corporate strategy for Iron Eagle. He further added “We have been privileged to work with Mr. Hildebrand and Mr. Gamble. We are appreciative that they will stay involved as consultants to Iron Eagle during the transition.”
August 24 , 2010
Iron Eagle Group (IEAG) Announces Execution of Definitive Agreement to acquire Southeastern Infrastructure Company
New York, NY – August 24, 2010 - Iron Eagle Group, Inc. (OTCQB: IEAG) today announced that it has entered into a definitive agreement to acquire the assets of Farache Enterprises, Inc., a leading Florida based regional site development, excavation, and road building construction firm. Farache’s business and assets will be transferred to a new entity 100% owned by Iron Eagle and will be called Farache Enterprises, a division of Iron Eagle Group, Inc. Moshe Farache, President and Founder of Farache Enterprises, Inc. will become President of the new division.
"We are very excited about establishing a strong base in Florida and the Southeast. Due to the strong growth in that region, there is considerable Federal and State infrastructure work in process and scheduled for the next decade in the Southeast.” commented Michael Bovalino, Chief Executive Officer of Iron Eagle Group. He further added “Farache has continuously built and improved market share, and we are confident that we will be able to further augment that growth and build additional value for all of our stakeholders”.
"I was immediately impressed with the institutional quality and deep construction experience of the management team that Iron Eagle has assembled,” stated Moshe Farache, President and Founder of Farache Enterprises, Inc. He added, “On behalf of myself and our employees, we anticipate wonderful growth, continued profitability, and improved customer service, business practices, and efficiencies as part of the Iron Eagle Group. ”
The final closing is expected to occur in the next 30 days. During this time period, Iron Eagle’s management team is working closely with the team at Farache to insure a smooth transition.
July 30, 2010
Iron Eagle Group (IEAG) Announces Signing of Multiple Letters of Intent
New York, NY – July 30, 2010 - Iron Eagle Group, Inc. (OTCQB: IEAGD) today announced that it has executed multiple letter of intents (LOIs) to acquire high quality targets focused on infrastructure and commercial construction. In addition, Iron Eagle has negotiated and agreed to the terms of a definitive agreement to acquire a growing southeastern site development and excavation company. Iron Eagle expects the schedules to the definitive agreement to be completed shortly and will release additional details when the agreement has been finalized.
The total amount of revenues currently under the definitive agreement and LOIs with Iron Eagle represent approximately $50,000,000 and $10,000,000 of adjusted EBITDA for the twelve months ending December 2009 on a pro forma basis. These financial results are provided by the management of the selling companies and are subject to due diligence.
“The execution of the letters of intent validates the Iron Eagle business strategy,” stated Michael Bovalino, Chief Executive Officer for Iron Eagle Group. He added: “We now have executed agreements that bring true critical mass to our Company, with profitable growing corporate assets providing a strong foundation for exceptional growth.”
“We believe the companies under LOI have the ability to significantly benefit from Iron Eagle’s construction, federal contracting, surety, and operations expertise,” commented Jason Shapiro, Co-Founder, Director, and Executive Vice President of Corporate Strategy for Iron Eagle Group. He further added “This will facilitate additional growth leading to revenue and margin expansion.”
The acquisitions are scheduled to close in the next 45-90 days. Due to confidentiality agreements, the names of the companies and terms of the agreements have not been disclosed. Note that there is no certainty that Iron Eagle will actually close these acquisitions
July 16, 2010
Iron Eagle Group (IEAG) Announces Appointment of Joseph E. Antonini, Former Director of Shell Oil, Chrysler, and Kmart, to the Board of Directors
New York, NY – July 16, 2010 - Iron Eagle Group, Inc. (OTCQB: IEAG) today announced that it has appointed Joseph E. Antonini to the Board of Directors.
“On behalf of Iron Eagle Group, I am honored to welcome Joseph Antonini to the Board of Directors,” stated Jason Shapiro, Co-Founder, Director, and Executive Vice President of Corporate Strategy for Iron Eagle Group. “Joe brings extensive corporate leadership to the company, including expertise in financing, negotiating complex contracts and driving growth.” In addition, Iron Eagle will benefit from Joe’s active leadership as a board member of major global companies including Chrysler, Kmart and Shell Oil. His corporate governance experience will further assist Iron Eagle on its path toward listing on a senior exchange, such as the NASDAQ or AMEX. While Chairman, President and CEO of Kmart, Joe successfully introduced Martha Stewart, purchased The Sports Authority when it was only a 10-store chain, bought OfficeMax, and acquired Borders, Inc., when it was only a 22-store chain. These were all significantly grown and eventually successfully IPO’ed.”
Joseph E. Antonini is the former Chairman, President and CEO of Kmart Corporation, where he worked for over 30 years. At Kmart, Joe rose from his humble beginnings as a management trainee, at the then S.S. Kresge Company in 1964, to Chairman of the giant retail chain in 1987. He is credited with leading Kmart into a new era by launching store renewal programs of unparalleled scope in retail history. They included expansion of the retailer's specialty store concepts, along with introduction of the Kmart Super Center, both contributors to setting new sales and profit records. In the past, Joe has been awarded key positions that include Chairman of the National Retail Federation and the National Minority Supplier Development Council. He has also served on the Board of Directors of Polaroid Corporation, Chrysler Corporation, Shell Oil Company, Ziebart International, NBD Bank (ultimately acquired and merged into Bank One and then JPMorgan Chase), Michigan Bell, Economic Club of Detroit, and as a Trustee for the National Italian American Foundation. He is also a recipient of the Horatio Alger Award. A native of West Virginia, Joe holds a Bachelor of Science degree from West Virginia University. In 1992 he was recognized by the University as its most distinguished alumni
The stock has settled and now is ready for another break out The last press release was the piece of the puzzle that was needed Government contracts. The team is now in place. The stock will have another rally. There is a feature on www.bullstockalerts.com
Ironclad management IMHO it's going to $1!
Great team on board, large government contracts expected. This one is worth the risk!
Strong Buy
WOW IEAG Awakening and Adding Dream Team to Management Positions.
Iron Eagle management consists of experts in construction, government contracting, defense, finance, operations, and business development. The management team and advisors have high-level senior management experience with corporations that include UBS Investment Bank, Pyramid Management Group (the largest privately held commercial real estate company in the US), Energetix (parent company-RGS Energy), Masco Corporation, Macquarie Capital Fund, J.P. Morgan, Atlantic Inertial Systems Inc (“AIS”), Computer Systems Center Incorporated (CSCI) and even garner Federal Government sales and DOD Agency contract experience.
IEAG looks to be making news in the industry and adding to portfolio can be make all the difference early!
Strong Buy?
Super Strong Buy!
Ha ha, Shawn. I just saw this post. You owe me nothing man. Your picks are better. I just have fun finding them before everyone else. Cheers!
wow!! Is this the GREAT rodburton from that awesome Twitter group? I have followed you for years and your picks are excellent!! Thanks again big guy. I owe you some drinks!!
there u are again rb. Starting to do my dd I wander how high this puppy is going to go?
8-k released today (1/12/10) about merger with Iron Eagle:
Iron Eagle site: http://www.site.ironeaglegroup.com/Home.html
8-k: http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6983358
Lawsuit Verdict
Pinnacle Resources, Inc. (PNRR); (Frankfurt-PIN) announced today that it received a favorable verdict in its breach of contract claim against an unnamed financial consulting firm out of Texas.
The suit was litigated in the 129th District Court in Houston, Texas in which a jury awarded Pinnacle actual damages of $810,000 as well as $50,000 in court costs and legal fees. As a result of this verdict Pinnacle expects to retrieve 2,835,000 shares of common stock for return to its treasury.
Mr. Gamble, President of the company indicated that he thought it would take approximately six weeks of additional filings and legal effort to conclude the process. However, upon completion of this matter it would leave Pinnacle with approximately 14,300,000 shares outstanding. Therefore the cancellation of the shares from this litigation would represent more than a 16% increase in the value of each of the shares outstanding.
Additional information on Pinnacle Resources, Inc. is available on the company's website at www.pnrr.net
DIAMOND RECOVERY J.V.
Pinnacle entered into a Joint Venture with Mr. Chris Wilson's South African company Ocean Options, cc, which has been engaged in the recovery of diamonds from South Africa's West Coast. Ocean Options has been operating for the past five years from a boat rigged with gravel recovery equipment.
The expression "necessity is the mother of all inventions" may very well be applicable here. Because in an attempt to overcome the treacherous conditions provided by the stormy west coast, Mr. Wilson designed and applied for patents on the Ocean Walker™. This unique configuration eliminates the need for a boat as the equipment stands on metal legs above the often-tremulous sea. Because of the difficult sea and weather conditions, a recovery boat may work only 60 days per year. With the Ocean Walker™ design, Mr. Wilson predicts that we will enjoy 300 operating days per year. The platform is stabilized and elevated above the highest of swells. The vulnerability for both men and equipment is minimized. The Ocean Walker™ should produce as much diamond bearing gravels as eight boats.
In light of this opportunity, Pinnacle and Ocean Options formed a South African company called Diamonaire Exploration PTY LTD, which is owned equally by both parties. Diamonaire will hold all patents and technology. Pinnacle agreed to loan $300,000 US to the holding company and Wilson contributed all of the equipment necessary to equip the first Ocean Walker™ platform. In addition, Pinnacle provided 100,000 shares of restricted Pinnacle common stock to Mr. Wilson and the opportunity to receive more shares based upon cash flow performance.
Diamonaire formed a wholly owned operating company, Ocean Exploration cc, in which the first Ocean Walker™ will be assigned and the diamond recovery operation will be conducted. After payout of the monies loaned by Pinnacle, then a back-in (revisionary interest) of 20% of Ocean Exploration will be assigned to Poseidon Divers Group Ltd.
The decision to participate in potential cash flow projects is somewhat of a departure from the company's historical mineral asset ventures. Management was impressed by the potential offered by Ocean Walker™ and pursued the relationship with a view to create monthly cash flow for the company.
Pinnacle Resources Receives $500,000 on Sale of Stock
ENGLEWOOD, Colo., July 15, 2002 (PRIMEZONE) -- Pinnacle Resources, Inc. (OTC:PNRR - news) (Frankfurt:PIN) closed on a private sale of 1 million shares of its Anooraq Resources, Inc (CDNX:ARQ - news) stock. The transaction was concluded at a net sale price of US$.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$.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: 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.
Form 10QSB
May 15, 2002
PINNACLE RESOURCES INC (PNRR.OB)
Quarterly Report (SEC form 10QSB)
Item 2. Management's Discussion and Analysis or Plan of Operations
In January 2002, Pinnacle created a Nevada Corporation by the name of Titan Intellectual Ltd which was set up as a wholly owned subsidiary. Titan Intellectual then contracted with Dr. Jan Becker of Pretoria, South Africa to acquire and hold all of Dr. Becker's know- how, capability, process expertise and the patentability of certain designs and methodologies for the treatment and purification of vanadium, titanium, and tantalum ores and concentrates.
In February 2002 Titan Intellectual then licensed the Becker technology and technique to Titan Processors (Pty) Ltd, a South African corporation with the expectation that Titan Processors would erect a processing facility for concentrates of tantalite in order to refine the tantalite ore into highly purified tantalum oxide. The Licensing Agreement was let to Titan based upon a royalty of
Five (5%) of the gross plus a Fifteen (15%) Percent participation in the net profits of Titan after payback of its loan for start-up capital of the refinery.
Also in February, Pinnacle Resources agreed to issue 100,000 shares of stock from its treasury to Dr. Becker for consulting to erect and oversee construction of the tantalite refinery; and then another 100,000 shares upon the completion of the refinery; and additional 100,000 share blocks of common stock based upon million dollar increments of profitability of Titan Processors (Pty) Ltd until Dr. Becker has realized a total of One Million shares. Pinnacle also agreed to exclusively retain Dr. Becker at a salary of US$4,000 per month the obligation of which will be paid by Titan Processors. Additionally, Pinnacle holds the sole option to acquire up to 85% of Titan Processors but has elected to hold off on this acquisition until an issue of environmental liability has been clarified. Titan Processors refinery installation is being placed upon the milling and processing campus of Rappa Holdings, LLC utilizing Rappa's hazardous materials license and for this concession Rappa earned an option to acquire the remaining 15% of Titan Processors one year after the refinery starts cash flow.
Pinnacle sought to achieve financing for Titan Processors and therefore retained the services of a legal financial specialist, Greg Bartko, who operates under the name of Capstone Capital. Capstone proceeded to arrange for Titan Intellectual to issue Convertible Debentures in tranches of $200,000 under a Rule 504 Private Placement Subscription. Upon completion of the initial tranche of $200,000, of which Barkto, etals deducted $44,000 in fees, Capstone then orchestrated the merger of Titan Intellectual into Pinnacle Resources such that Pinnacle was then responsible to issue its shares for the convertible debentures when a conversion notice was presented. The net result was that the investors tried to convert when the stock price of Pinnacle was depressed. Company management objected and settlement was achieved in lieu of litigation. The net result was that an additional three million shares of Pinnacle common stock was issued. Net monies derived from this transaction have been used in part ($56,000) for operational expense reimbursement to Pinnacle and the balance ($100,000) has been committed toward a loan to Titan Processors in order to fund the tantalum refinery in South Africa. Loan terms to Titan Processors call for interest to be set at South Africa's prime rate plus two percent (16%) with an amortization schedule of three years commencing six months after the refinery is operational; however, management may accelerate the payback if feasible.
Capital Resources and Source of Liquidity.
For the nine months ended March 31, 2002, Pinnacle purchased equipment of $1,201 and made advances to related parties as notes receivable of $55,000. As a result, Pinnacle had net cash used in investing activities of $56,201 for the nine months ended March 31, 2002.
For the nine months ended March 31, 2001, the Company had cash received in acquisition of $1,151. The Company purchased equipment for $3,034. As a result, the Company had net cash flows from investing activities of $3,034 for the nine months ended March 31, 2001.
For the nine months ended March 31, 2002, the Company received advances from officer/shareholder of $250,000, net proceeds from loans and line of credit of $46,520. Pinnacle made principle payments on capital lease of $1,236 and received proceeds from the issuance of debenture, net of offering costs of $156,000. As a result, Pinnacle had net cash provided by financing activities of $451,284 for the nine months ended March 31, 2002.
For the nine months ended March 31, 2001, Pinnacle received advances from officer/shareholder of $90,560, proceeds from loans and line of credit of $49,984 and proceeds from the sale of common stock of $33,000. As a result, Pinacle had net cash provided by financing activities of $173,544 for the nine months ended March 31, 2001.
Results of Operations. Pinnacle expects to earn consulting fees, commissions, brokerage points and equity participation for having acted as an arranger and go-between from having effectuated a financing package on behalf of a client and a funding source. To date, Pinnacle has not yet commenced operations or received any revenues.
Pinnacle had a net loss for the nine months ended March 31, 2002 of $486,523. Pinnacle incurred prospecting costs of $42,869, general and administrative expenses of $159,135, legal and accounting fees of $63,919, travel of $44,346, depreciation and amortization of $3,945 for the nine months ended March 31, 2000. Pinnacle had operating losses of its subsidiary disposed during the year of $172,281 and a foreign currency transaction loss of $28.
Pinnacle had a net loss for the nine months ended March 31, 2001 of $199,205. Pinnacle incurred prospecting costs of $492,279, stock- based compensation of $1,630,601, general and administrative expenses of $166,716, legal and
accounting fees of $27,445, travel of $26,523, depreciation and amortization of $65,162 for the nine months ended March 31, 2000.
Plan of Operation. Pinnacle is not delinquent on any of its obligations even though Pinnacle has not yet begun to generate revenue. Pinnacle will identify and subsequently qualify prospective clients. Current operations require minimal cash infusions. Pinnacle may borrow funds or obtain equity financing from affiliated persons or entities to continue operations, if necessary. Pinnacle intends to market its services utilizing cash made available from the recent private sale of its common shares. Pinnacle is of the opinion that revenues from its services along with proceeds of the private sale of its securities will be sufficient to pay its expenses until receipt of revenues at a level to sustain operations.
Pinnacle Board Approves Tantalite Refining Project
Wednesday February 27, 11:26 AM EST
ENGLEWOOD, Colo., Feb 27, 2002 /PRNewswire-FirstCall via COMTEX/ -- Pinnacle Resources, Inc. (Pinnacle) (OTC Bulletin Board: PNRR; Frankfurt: PIN) announced today that it has exercised its option to acquire 100% of Titan Intellectual Ltd, a Nevada Corporation that holds formulas, processing methodology and know-how for refining tantalum oxide. Titan Intellectual recently licensed Titan Processors (Pty) Ltd (Titan), a South African company, to use its technology to produce tantalum oxide, a material used in cellular phones and computers.
Dr. Jan Becker, whose methodology and know-how were acquired by Titan Intellectual, will become the Technical Director of Titan to manage the construction of a tantalum refinery in Johannesburg, South Africa and to oversee the initial production and scheduled expansion. Construction of the plant is presently underway.
Pinnacle agreed to finance the Titan plant by loaning Titan the required funds for construction and start-up of the plant. Pinnacle will receive 16% interest on the declining balance of the loan plus a 10% net profits participation until the loan has been amortized, and then, 25% of the profits thereafter. Additionally, Titan Intellectual will receive a 10% royalty on the gross sales of Titan.
Mr. Hildebrand, Director of Finance for the Company, said "that the Titan structure is uniquely designed to generate immediate cash flow and pay handsome future rewards to Pinnacle while minimizing operating risk for the Company. The near term goal is to reach the production level of 10,000 kilograms of tantalum products per month that will generate an estimated gross in excess of $2 million per month."
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 may not come to pass. It is important to note that actual results may differ from those expressed in such 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 resources might be economically extracted. If additional projects are acquired, there can be no assurance of any economic benefit of cash flow to the company.
February 19, 2002
PINNACLE RESOURCES INC (PNRR.OB)
Quarterly Report (SEC form 10QSB)
Item 2. Management's Discussion and Analysis or Plan of Operations
Trends and Uncertainties. The financial statements have been prepared assuming that Pinnacle will continue as a going concern. Pinnacle is in the development stage and has no operations as of December 31, 2001. The deficiency in working capital as of December 31, 2001 raises substantial doubt about its ability to continue as a going concern. In the course of its development activities Pinnacle has sustained continuing losses and expects such losses to continue for the foreseeable future. Pinnacle's management plans on advancing funds on an as needed basis and in the longer term to revenues from the operations of which there is no assurance. Pinnacle's ability to continue as a going concern is dependent on these additional management advances, and, ultimately, upon achieving profitable operations.
Until revenues commence, Pinnacle shall raise funds through equity financing, which may or not be successful. Pinnacle has tried to limit its general and administrative expenses. Pinnacle has little or no control as to the demand for its services and, as a result, inflation and changing prices could have a material effect on the future profitability of Pinnacle.
Pinnacle will focus its financing and capital arrangement activities on emerging growth companies, which plan to raise capital in the public markets within a reasonable short period of time, i.e., one to two years. Although Pinnacle will initially target small mining companies due to its contacts in that industry, management has not identified any particular industry within which Pinnacle will focus its efforts. Rather, management intends to identify any number of candidates, which may be brought to its attention through present associations or by word-of-mouth.
Initially Pinnacle intends to arrange sources of funding and finance for its prospective clients through established sources for such funds by acting as a finder or broker to the lender and as an arranger or financial consultant to the borrowing party.
In the emerging markets of South Africa and South America, opportunities exist where small mining companies seek funding from outside sources for capitalization because it is not available locally.
Management has over 70 years of combined business experience involving a variety of situations where financing and/or funding has been required in order to effectuate a mining opportunity. Individually, management personnel has directly funded, underwritten or brokered financing for a number of mining prospects over the years, both in the domestic market as well as South Africa and South America.
Management believes that Pinnacle will be able to successfully seek out potential candidates who are interested in obtaining loans from Pinnacle in the immediate future. This belief is based upon the perceived difficulty of many development and growth stage companies who require additional financing, but are unable to obtain the same from established sources, such as banking institutions and venture capitalists. As interest rates begin to rise, management anticipates that those types of entities earmarked by Pinnacle as possible clients will continue to seek out Pinnacle as a lending source, as management views a potential borrower's borrowing base in a different light than banks. For loans made by regulated commercial lenders, there is normally a structured review and evaluation of a prospective borrower's loan application by the lender, including an in-depth review of such application by a loan committee. The loan committee will then approve or reject each application as it is submitted. The evaluation and approval of loans depends on subjective factors and judgments, as well as objective criteria, such as loan to value ratios and independent appraisals, when appropriate or available. Pinnacle's loan committee consists of substantially fewer persons than a commercial lender and uses a less formal procedure than more traditional lenders. It is possible that any such subjective factors and judgments may prove to be incorrect with a resulting loss of part or all of Pinnacle's investment in any particular loan. However, as part of the consideration provided to Pinnacle for issuance of its loans, Pinnacle receives its interest and attempts to also obtain additional consideration in the form of equity or options or warrants in the borrower. In the
event the borrower's business plan proves successful, Pinnacle may receive substantial returns as a result of this equity enhancement.
Most venture capitalists take an aggressive equity position far in excess of that of Pinnacle and in many instances, take an active role in the management of their clients. Management believes that this makes venture capitalists unattractive to those types of entities with whom Pinnacle does business.
Pinnacle's ability to become a significant lender is impaired primarily by its own lack of capital with which to make loans. While management would welcome the opportunity to make more loans for larger amounts, management finds itself in the same predicament as that of its prospective clients. That is, the lack of capital with which to fully implement Pinnacle's business plan. Management hopes that as Pinnacle begins to make successful loans, its track record will allow Pinnacle to attract either private investors seeking to invest in the business of Pinnacle on a private basis, or that Pinnacle will be able to attract an investment banker willing to underwrite a secondary offering of Pinnacle's securities to generate additional capital. There are no assurances that Pinnacle will be able to attract either of the aforesaid entities to increase Pinnacle's working capital. If Pinnacle is unable to obtain additional working capital, it is unlikely that Pinnacle will generate any substantial growth in the near future.
Capital Resources and Source of Liquidity. Pinnacle currently has no material commitments for capital expenditures. Pinnacle pays $1,500 rent per month for its current office space. An increase in lease payments could have negative effect on the cash flow and liquidity of Pinnacle.
In October 1999, Pinnacle issued 1,500,000 Shares of common stock from its treasury for the acquisition of 4,000 shares of Plateau Resources (Pty) Ltd. that made Plateau a 100% wholly owned subsidiary of Pinnacle. Then on August 28, 2001 Pinnacle accepted 7 million shares of Anooraq Resources Corp common stock in a tax free exchange of the 4,000 shares of Plateau. The Anooraq stock has a current market value of $2.5 million.
On October 1, 1999 Pinnacle issued 140,000 shares of common stock for cash of $137,500, or $.50 per share, resulting in net cash flows from financing activities of $137,500.
Pinnacle received a loan of $100,000 in March of 1998 and then converted that loan together with accumulated interest to equity by issuing 300,000 shares of common stock from its treasury. A loan of $75,000 was made to Plateau Resources (Pty) Ltd in May of 1999 was repaid when Pinnacle closed on a Loan Facility Agreement with Anooraq Resources, Inc. Another loan made September of 1998 to Asset Partners, Ltd in the amount of $40,000 was written off. There is a narrow probability that third party funding of Vanadium and Magnetite Exploration and Development (Pty) Ltd will be finalized in the short term and it is highly unlikely that Pinnacle will find a joint venture partner at any time in the near future. This acquisition has caused a financial burden of approximately US$7,500 per year for Pinnacle and if Pinnacle is unsuccessful in meeting those financial obligations then a partial asset sale of VMED would become a necessity.
For the six months ended December 31, 2001, Pinnacle purchased equipment of $1,201 resulting in net cash used in investing activities of $1,201.
For the six months ended December 31, 2000, Pinnacle purchased equipment of $3,034 resulting in net cash used in investing activities of $3,034.
For the six months ended December 31, 2001, Pinnacle received advances from officer/shareholder of $250,000, proceeds from loans and a line of credit of $76,440, and made principle payments on capital lease of $914. As a result, Pinnacle had net cash provided by financing activities of $325,526 for the six months ended December 31, 2001.
For the six months ended December 31, 2001, Pinnacle received advances from an officer/shareholder of $57,432, proceeds from the sale of common stock of $33,000 and received proceeds from loans and a line of credit of $59,984. As a result, Pinnacle had net cash provided by financing activities of $150,416 for the six months ended December 31, 2001.
Results of Operations. Pinnacle expects to earn consulting fees, commissions, brokerage points and equity participation for having acted as an arranger and go-between from having effectuated a financing package on behalf of a client and a funding source.
To date, Pinnacle has not yet commenced operations but has received revenues on advances made by Anooraq as it pertains to the transactions relating to Plateau, namely an initial option payments totaling $175,000 and a loan advance of $150,000 against the transfer of 500,000 shares of Anooraq stock. Pinnacle had a net loss for the six months ended December5 31, 2001 of $393,566.
For the six months ended December 31, 2001, Pinnacle had prospecting costs of $39,917, general and administrative expenses of $101,355, legal and accounting fees of $42,866, travel of $32,687, depreciation and amortization of $1,992 and operating looses of subsidiary disposed during the year of $172,281.
Pinnacle had a net loss for the six months ended December 31, 2000 of $2,080,082. For the six months ended December 31, 2000, Pinnacle had prospecting costs of $61,830, stock-based compensation of $1,471,540, general and administrative expenses of $115,413, legal and accounting fees of $4,502, consulting, related party of $25,650, travel of $4,727, depreciation and amortization of $60,822 and an asset impairment charge of $337,535.
Plan of Operation. Pinnacle is not delinquent on any of its obligations even though Pinnacle has not yet begun to generate revenue. Pinnacle will identify and subsequently qualify prospective clients. Current operations require minimal cash infusions. Pinnacle may borrow funds or obtain equity financing from affiliated persons or entities to continue operations, if necessary. Pinnacle intends to market its services utilizing cash made available from the recent private sale of its common hares. Pinnacle is of the opinion that revenues from its services along with proceeds of the private sale of its securities will be sufficient to pay its expenses until receipt of revenues at a level to sustain operations.
Financing Obtained!
Wednesday December 19, 4:30 PM EST
ENGLEWOOD, Colo., Dec 19, 2001 /PRNewswire via COMTEX/ -- Pinnacle Resources,
Inc. (OTC Bulletin Board: PNRR; Frankfurt: PIN) announced today the company has obtained financing that will enable the company to proceed with its planned tantalite project and to continue the development of the company's South African vanadium/titanium deposit. Pinnacle was able to obtain a $250,000 line of credit by securing the loan with a portion of the common stock in Anooraq Resources that the company received for its platinum property earlier this year.
President Glen Gamble stated that Pinnacle has committed funds to building a tantalum oxide refinery in South Africa to process South African, as well as neighboring nation's, tantalite ores and concentrates. Pinnacle has entered into an exclusive license agreement with Professor Jan Becker to use the Becker
process to produce high purity tantalum products for the international market. Pinnacle's tantalum processing refinery will be the first such plant in Africa.
Tantalum is a space age metal that finds application in electronics and in specialty alloys. The metal is employed in capacitors which are used in cellular phones and television receivers because of tantalum's stable dielectric properties. Tantalum is also suited for hardening steel and the production of superalloys used in jet engine components.The first module of the refinery will have the capacity to produce products with an estimated gross market value of $6 million per year. Additional modules to the refinery will be added as the Pinnacle expands the market. The first module
of the refinery is scheduled to go into production in the first quarter of 2002 utilizing the Becker process which is unique because it is environmentally friendly.
Pinnacle Gains License to Tantalite Process and Retains Expert
ENGLEWOOD, Colo., Aug. 22 /PRNewswire/ -- Pinnacle Resources, Inc.
(Pinnacle) (OTC Bulletin Board: PNRR; Frankfurt: PIN) announced that it has
entered into an agreement with Dr. Jan H. Becker of Pretoria, South Africa to
utilize, on an exclusive basis, a process that Dr. Becker developed for
refining tantalite.
The agreement provides for Dr. Becker to oversee the
construction of a commercial processing facility for upgrading tantalite using
the Becker process, and training personnel to operate the plant.
Dr. Becker is renowned in the iron and steel industry for his work with
permanent magnets, vanadium, titanium, and tantalum.
Prof. Becker retired in
1996 after serving 24 years at the University of Pretoria as a senior lecturer
in their Department of Material Science and Metallurgical Engineering.
He has
also consulted with major industrial companies and holds a number of patents.
Tantalite, an oxide of tantalum, is used in the electronics industry to
manufacture capacitors for personal computers, cellular phones and pagers.
Tantalum, the metal in powder form, has applications in specialty steel
manufacture.
Mr. R. A. Hildebrand, a Professional Mining Engineer and Director of
Pinnacle indicated that ``currently the grade of tantalite that is shipped from
South Africa ranges from 25 to 60 percent Ta2O5 (tantalum oxide).
Prof.
Becker's process produces a tantalite concentrate assaying in the range of 96
to 99 percent.
High grade tantalite commands a much higher price than the
lower ore grade of tantalite produced by the miners who sell it in crude
form.''
Glen Gamble, President of Pinnacle Resources, said that ``this facility is
needed in Africa as the miners of tantalite ship 40% or more waste in the
product they now sell to overseas buyers.
Pinnacle intends to custom mill ore
for independent miners in addition to processing its captive South African
ore.
We expect to be able to buy and process tantalite ores from neighboring
Mozambique, Botswana and Namibia at prices benefiting the local, artisanal
miners and the Company.''
Additional information on Pinnacle Resources, Inc. is available on the
company's Web site at http://www.pnrr.net.
TANTALUM PROJECT
In July 2001, Pinnacle entered into a memorandum of understanding and agreement with Prof. Becker of South Africa to produce and market a tantalum oxide concentrate. Prof. Becker was a Senior lecturer in the department of metallurgical engineering at the University of Pretoria, South Africa, and is a consultant to major steel companies of the world.
Prof. Becker has agreed to provide Pinnacle with his cutting-edge technology and use of his world patents for the construction of a tantalum (Ta)beneficiation plant in South Africa. Financing for the facility will be provided or arranged by Pinnacle Resources, Inc.Sources of tantalum ore have been identified by Dr. Becker in Zambia,Mozambique and South Africa, and are thought to be capable of providing a reliable feed stock for the plant. Since the United States has no domestic source of tantalum, Ta can be deemed a strategic metal adding further significance to Pinnacle's tantalum project.
Tantalum is an excellent conductor of heat and electricity and has a very high melting point. Because of these qualities Ta's major use is in the production of electronic components and high temperature alloys.A major application of tantalum is for capacitors used in portable telephones,personal computers and automotive electronics. Alloyed with other metals, tantalum is used for making carbide tools for metalworking and in the
production of super-alloys for jet engine components.
The Company believes that the anticipated purity of the tantalum concentrate yielded by the Becker process will enable Pinnacle to become the preferred provider of superior quality tantalite.
Press Release June 6
Pinnacle Resources Inks Agreement on Platinum Properties
ENGLEWOOD, Colo., June 6 /PRNewswire/ --
Pinnacle Resources, Inc.(Pinnacle) (OTC Bulletin Board: PNRR; Frankfurt: PIN)
announced that it has signed an agreement with Anooraq Resources, Inc.
(CDNX: ARQ - news) under which Anooraq has agreed to acquire Pinnacle's 50 percent
stock holding of Plateau Resources (Pty) Ltd.
The net effect of the
transaction for Pinnacle is the realization of US$150,000 plus seven million
shares of Anooraq common stock.
Plateau Resources has been serving as
Pinnacle's and Anooraq's South African subsidiary that holds prospecting
rights comprising 14 kilometers of prospective ground in the famed Bushfeld
Complex, which hosts the Platreef, a resource of proven platinum and palladium
mineralization.
Under the agreement, which still requires certain Canadian regulatory
approvals, Pinnacle will gain two seats on the Anooraq Board of Directors in
addition to the cash payment and common stock representing over 30 percent of
the outstanding shares of Anooraq.
According to Pinnacle's President Glen Gamble, the company had been in
negotiations with a variety of drilling and exploration companies in order to
accelerate improved liquidity and shareholder value through restructuring its
interest in the platinum and palladium properties.
``The Anooraq offer had
substantially more value than other offers we considered.
It was apparent
that management in both companies realized that the whole unitized project has
more value than the sum of the two partially owned interests, consequently it
facilitated a very good business move for both companies,' he said.
Anooraq, a Hunter-Dickinson managed company, had already earned a
50 percent holding in Plateau by funding an exploration program in excess of
Cdn$4 million.
``Controlling the entire platinum holding should enable Anooraq to become
more effective in South Africa as well as in the platinum industry and the
worlds' financial markets,' said Gamble.
``And from Pinnacle's perspective,
this deal enables us to achieve some liquidity while still maintaining major
participation in the Platreef development as well as Anooraq's growth in
general.'
Gamble added that Pinnacle will continue to play an active role to help
Plateau management in the South African theatre.
Pinnacle Resources' objective is to continue to build its asset base by
acquiring title to promising natural resource prospects and to develop them
through strategic alliances within the resource industry.
Additional information on Pinnacle Resources, Inc. is available on the
company's Web site 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 may not come to pass.
It is
important to note that actual results may differ from those expressed in such
forward-looking statements.
Although Pinnacle believes its properties have
potential, they are in early stages of exploration and development which have
not shown to contain proven economic reserves.
There can be no assurance that
if identified, any resources might be economically extracted, or funding
available, or that any such properties might be acquired in the future.
If
projects are acquired, there can be no assurance of any economic benefit, of
cash flow to the company.
SOURCE:
Pinnacle Resources, Inc.
Pinnacle Enters Negotiations on Platinum Property
ENGLEWOOD, Colo., May 14 /PRNewswire/ -- Pinnacle Resources, Inc.
(OTC Bulletin Board: PNRR - news)
announced it has initiated negotiations with a variety
of drilling and exploration companies as well as major
mine developers and operators to farm out its 50% holding
in Plateau Resources (Pty) Ltd.,
its South African subsidiary.
Plateau holds Prospecting Rights to several farms
in South Africa's famed Bushfeld Complex,
which hosts the Platreef, a resource of proven platinum
and palladium mineralization. The company's expertise
and contacts will enable it to find the most appropriate
mining industry partner, which will benefit the company and enhance shareholder value.
Additionally a strategic placement of Pinnacle
interests will attract keener interest from the
financial community as well as from the principal
participations in the world's platinum industry.
Glen Gamble, President of Pinnacle, said that a
properly structured placement of Pinnacle's platinum
interest should generate increased liquidity for the company
and enable management to pursue other endeavors.
We have been ambitious to engage oil and gas opportunities,
such as the company's option on the Caspian Sea prospect
in Kalmykia, an independent federated republic of Russia.
The Caspian Sea Field represents an opportunity to
involve the company in one of the hottest
oil and gas plays in the world.
Additional information on Pinnacle Resources, Inc. is
available on the company's Web site 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 may not come to pass. It is
important to note that actual results may differ from
those expressed in such forward-looking statements.
Although Pinnacle believes its properties have potential,
they are in early stages of exploration and development
which have not shown to contain proven economic reserves.
There can be no assurance that if identified, any resources
might be economically extracted, or funding available,
or that any such properties might be acquired in the future.
If projects are acquired, there can be no assurance of any
economic benefit, of cash flow to the company.
Project Info II
VANADIUM PROJECT
Pinnacle Resources announced that they
had concluded negotiations to acquire 100% ownership of Vanadium and
Magnetite Exploration and Development (Pty) Ltd. (V-MED) on June 7,
2000. V-MED, a South African corporation holds an exclusive 30-year
mineral lease on five contiguous farms near Potgietersrus, South Africa.
Significantly, these properties are adjacent to Pinnacle's platinum-palladium
properties.
The farms cover
17,188 acres within the Bushveld Complex, a region that accounts for
50 percent of the world's vanadium supply. They host a 6-meter thick
main layer magnetite, approximately 17 kilometers in strike length,
which is believed to be the largest underdeveloped resource of vanadium
in the world. Indicated resource of the main magnetite layer to a depth
of only 80 meters is estimated to be 100 million tones of magnetite
containing 1.67 million tones of vanadium pentoxide. Assays from diamond
core drilling show that the "run-of-mine ore" contains an average of
1.24% vanadium pentoxide and 11.88% titanium dioxide. The outcropping
and shallow magnetite layer constitutes a low cost open pit proposition.
Beneath the main
magnetite layer occurs a 20-meter thick horizon averaging 35% magnetite containing 1.71% vanadium pentoxide. Inferred resources to a depth of
200 meters are estimated to be 320 million tones of magnetite and 2.69
million tones of vanadium. Total resources on the properties to a depth
of 200 meters are therefore on the order of 570 million tones of magnetite
containing 6.87 million tones of vanadium pentoxide.
In March
1997 a techno-economic study to beneficiate the ore from the main magnetite
layer on V-MED's properties was conducted by the Council for Mineral
Technology (Mintek), world-renowned specialists in mineral and metallurgical
technology. The Department of Mining Engineering, University of Witwatersrand
also undertook mining studies. Ross Glanville & Associates of Vancouver,
Canada used the results of these investigations for an economic valuation
of the properties. They concluded that over a 20-year project life at
an annual production rate of 4120 tonnes of ferrovanadium (FeV) and
a price of $17/kg FeV, the operation showed a net present value (NPV)
of $70 million. In May 1998 with increased vanadium prices, Glanville
repeated the study using $22/kg FeV that returned an NPV of $111 million.
Recent research
and development into the beneficiation of vanadiferous titano-magnetite
ores indicates that it may now be economically feasible to extract not
only vanadium from the deposits, but also titanium and iron. V-MED is
investigating two breakthrough processes utilizing the expertise of
Bateman Minerals and Metals subsidiary Bateman Titaco (Pty) Ltd. and
Mintek.
Project Info.
PLATREEF PROJECT
The Platreef is situated in the Potgietersrus Limb of the Bushveld Complex
in the Northern Province of South Africa. The Bushveld Complex produces
70 percent of the world's platinum and 25 percent of its palladium.
In October 1999 Pinnacle acquired the prospecting rights on four farms
adjacent to the worlds largest producing platinum and palladium mine
owned and operated by Anglo American Platinum (Amplats). The prospecting
rights are held by Pinnacle's wholly owned South African subsidiary
Plateau Resources Ltd. The prospecting rights include three farms which
cover a strike length of ten kilometers of the Platreef extension to
the north of Amplats properties, and one farm to the south.
In January 2000, Pinnacle, through Platreef, secured $6.9 million
in funding for the Platreef project. The exploration project will be
financed by Anooraq Resources Inc. (ARQ-CDNX), a Hunter-Dickinson managed
company. Under the terms of the shareholders agreement Anooraq earns
shares in Plateau by systematically funding a comprehensive drilling
and exploration program up to $6.9 million. When Annoraq achieves full
funding it will have acquired a 70 percent shareholding in Plateau.
At this point, Pinnacle will convert its remaining 30 percent of Plateau
shares for 30 percent of Anooraq's shares on an undiluted basis.
Initial drilling results were successful in outlining platinum-palladium-rhodium
PGMs) and gold mineralization. The results were sufficiently favorable
to encourage Anooraq to accelerate the drilling program. The first nine
core holes drilled, sampled and assayed "all intersected significant
PGM mineralization," according to Anooraq. The significance of those
initial results is that they tend to prove that the mineralized Platreef
bed extends north of Amplats property, which adjoins Plateau's to the
south. The core drilling did encounter PGM mineralization of a grade
that is currently being mined by Amplats.
The next round of drill results found significant core-hole intersections
of PGM mineralization that enlarged the previously proven extent on
mineralized reef from 500 meters to 800 meters of strike leaving 9200
meters to explore. Drill Hole 14, a 300 meter step-out shows significant PGM mineralization with a 17 meter section grading 3.09 of PGM/ton and
sub-sections of 2.10 meters averaging a grade of 4.12 grams PGM/ton
and 5.50 meters grading 5.62 grams of PGM/ton. These assay results show
an overall increase in the grade of mineralization. The average of 3.09
PGM/ton of Hole 14 is five times greater than the minimum cutoff grade
of 0.6g of PGM/ton used by producers in the district. The thickness
of the potentially mineable zone seems to increasing.
Option to Acquire Joint Venture
Interest In Proven Caspian Sea Oil and Gas Reserves
ENGLEWOOD, Colo., April 18 /PRNewswire/ -- Pinnacle Resources, Inc.
(Pinnacle) (OTC Bulletin Board: PNRR; Frankfurt: PIN) announced that it has
secured an option to acquire 100 percent of Eastern Petroleum (Cyprus) Limited
(Eastern), a 49 percent owner of The Caspian Field, a proven oil producing
property bordering the northwest coast of the Caspian Sea.
The Caspian Field is located in the independent State of Kalmykia lying
immediately south of Kazakhstan, site of recent discoveries of world-class oil
reserves, and north of the legendary Baku oil fields. The Caspian Field,
drilled in the 1960's and essentially neglected since then, has flowed
950,000 barrels of oil from twelve unequipped wells. London-based Quad
Engineering Ltd., a petroleum consultancy, reported on the property and gave
it a proven, recoverable reserve of 19.7 million barrels of oil.
According to Pinnacle's President Glen Gamble, the company chose to
proceed with this opportunity "because of the enormous upside potential over
and above the 20 million barrels. The moderately high paraffin content of the
oil has tended to plug the well bores limiting the flow of oil. We expect to
increase oil production from the Caspian Field almost immediately by applying
conventional techniques that have been employed successfully in western oil
field practice for many years", Gamble said. "We will work-over the wells and
complete them with good lifting equipment. The oil will be trucked
40 kilometers to a rail terminal for further transport to the Black Sea port
of Rostov for export as crude to the world market or sold locally to the
refinery at the port".
Under the April 6th agreement, Pinnacle has 30 days to advance
US$300,000 for application toward field operations, for which it will receive
a 15 percent shareholding in Eastern and the exclusive option to acquire the
remaining 85 percent of Eastern. At closing, scheduled for June 30th,
Pinnacle will advance another $800,000 for field improvements and issue
restricted shares of stock equivalent to $3 million based on the price of
Pinnacle stock on the date of closing. Eastern, the designated operator will
initially receive 90 percent of the oil production above 450 barrels per day
until payout of funds invested, and thereafter 49%.
"This project represents another vital step towards securing high value
cash producing assets for the company, Gamble said. Pinnacle Resources'
objective is to continue to build its asset base by acquiring title to
promising natural resource prospects and to develop them through strategic
alliances within the resource industry".
Additional information on Pinnacle Resources, Inc. is available on the
company's Web site 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 may not come to pass.
It is important to note that actual results may differ from those expressed in
such forward-looking statements. Although Pinnacle believes its properties
have potential, they are in early stages of exploration and development which
have not shown to contain proven economic reserves. There can be no assurance
that if identified, any resources might be economically extracted, or funding
available, or that any such properties might be acquired in the future. If
projects are acquired, there can be no assurance of any economic benefit, of
cash flow to the company.
SOURCE Pinnacle Resources, Inc.
04/18/2001
NEWS
Pinnacle Resources, Inc. Completes Funding of Diamond Project,
Anticipates Cash Flow
ENGLEWOOD, CO. March 22, 2001 - Pinnacle
Resources, Inc. (OTC Bulletin Board: PNRR; Frankfurt: PIN) announced
that it has secured, from a private source, the balance of its $400,000
commitment to fund a diamond recovery operation on an eleven kilometer
section of the Kanteya River in Guinea West Africa. Pinnacle had made
a commitment in December 2000 to provide project financing to the operating
company, Societe Alpha Plus, a Guinea West Africa corporation. The project
will be a joint venture, with Societe Alpha Plus supplying field personnel
and on-site management. In return for having arranged funding, Pinnacle
will receive 40 percent of the net operating revenues after payout of
150 percent of the funds invested.
The project will apply technically advanced
dredging, recovery, and separation equipment designed by Ocean Options
Company of Capetown, South Africa. Societe Alpha Plus will utilize trained
divers to operate the in-river equipment and experienced sorters to
separate the diamonds from the enriched sand and gravels recovered by
the diving team.
"This is a major breakthrough for
Pinnacle", said Glen Gamble, president, "because this project should start a revenue stream that every company needs to make it to
the next rung. Although it may be premature to predict the income that
Kanteya will produce for Pinnacle, we remain encouraged by the fact
that operators both up-stream and down-stream from our claims did exceedingly
well."
Additional information on Pinnacle Resources,
Inc. is available on the company's Web site at www.pnrr.net.
PRESS RELEASE
Pinnacle Resources, Inc. Completes Acquisition of Vanadium and Titanium
Properties
ENGLEWOOD, CO, Dec. 10, 2000 - Pinnacle Resources, Inc. (OTC Bulletin
Board: PNRR; Frankfurt: PNI) announced that it has completed its acquisition
of Vanadium and Magnetite Exploration and Development (Pty) Ltd. (V-MED).
V-MED, a South African corporation, holds an exclusive 30-year mineral
lease on five contiguous farms covering 17,188 acres adjacent to Pinnacle's
platinum-palladium properties near Potgietersrus, South Africa. Terms
of the acquisition were not disclosed.
The farms host two magnetite layers, approximately 17 kilometers in
strike length, which the company believes contain the largest undeveloped
resources of vanadium in the world. The magnetite contains approximately
11 percent titanium and 1.25 percent vanadium pentoxide. Indicated resource
of the main magnetite layer to a depth of 80 meters is estimated to
be 100 million tons of magnetite containing 1.67 million tons of vanadium pentoxide. The upper magnetite layer outcrops to the surface and presents
a low cost, open pit mining proposition.
Pinnacle Resources' objective is to continue to build its asset base
by acquiring title to promising mineral prospects and developing them
through strategic alliances with mining industry investors.
Additional information on Pinnacle Resources,
Inc. is available on the company's website at www.pnrr.net.
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COMPANY DESCRIPTION:
Eagle’s management consists of business leaders in construction, government contracting, defense, finance,
operations, and business development. Management has a compelling strategic plan to capitalize on the large $100
billion market opportunity in infrastructure construction created by the federal government’s stimulus package as in
addition to the billions of federal funds that have been approved to be spent at the state level for projects
throughout the United States. Through the experience and track records of its management team, along with a
strong and diversified balance sheet, Iron Eagle believes it will have a major competitive advantage by being able to
provide higher levels of construction surety bonds. Additionally, Iron Eagle is aggressively identifying synergistic
construction companies to achieve substantial growth through increased surety, improved operations, and joint
ventures. Iron Eagle will further target additional growth opportunities through the highly focused bidding of federal,
state, and municipal construction projects as well as working as a subcontractor to some of the multi-billion dollar
prime contractors in the United States. For more information, please visit www.ironeaglegroup.com.
Value Iron Eagle Brings to Construction Companies:
Increased Bonding Capabilities: By increasing the strength of its balance sheet, along with professional
relationships, Iron Eagle can significantly increase the bonding capacity to bid on and capture larger contracts, both
in the commercial and government marketplaces. This dramatically increases our ability to win additional contract
opportunities over smaller industry competitors.
Government Relations:
Iron Eagle has assembled a Senior Advisory panel of government contracting professionals
that has identified significant construction projects and strategic contract bid opportunities. Government bids require
significant manpower and knowledge to properly fill out all required documents. These veteran personnel with
decades of experience have a proven record and have successfully managed the government contract processes and
procedures required to capture and secure large contract awards.
Increased Revenues: Iron Eagle has a focused approach to achieving significant growth through organic means.
Iron Eagle’s management team has proven records of driving hyper growth through the proper development and
management of contractor, sub contractor, federal, state, and municipal relationships.
Preserve and Protect Corporate Culture: Iron Eagle’s acquisition protocols focus on regional leaders and best in
class. These companies typically have substantial and successful histories which Iron Eagle’s team will embrace,
protect, and build upon. Iron Eagle’s management has experience in growing these companies in a disciplined
process, such that their success can continue for the long term. Iron Eagle’s management team has extensive
experience in acquisitions integrating them into a national leader by positioning the company as a whole to grow by
1) retaining the current management and employees, 2) maintaining the existing corporate culture, and 3)
maintaining the acquisition’s name, corporate culture and enhancing their brand and reputation throughout the
industry.
Operational Improvements: Iron Eagle’s management team has a history of improving operational and financial
performance of small to medium-sized companies. Through strategic planning and initiatives, Iron Eagle helps
management teams focus on performance metrics and improvements throughout the organization.
Company Contact:
Mr. Jason Shapiro, CFA, CPA, J.D.
Chief Financial Officer
Iron Eagle Group, Inc.
Phone: +1 (917) 969-4845
jasons@ironeaglegroup.com
www.ironeaglegroup.com
Highlights:
Large Pipeline of Federal Stimulus Dollars: The U.S. federal government’s $700 billion stimulus
package has resulted in over $100 billion of guaranteed funding for a large number of federal, state, and
municipal construction projects. Additional infrastructure spending projects are continuously being
approved at both the federal and state levels creating additional opportunities.
Current Market Participants Unable to Meet Bonding Requirements: Federal prime contractors are
required to subcontract up to 30% of federal contracts to small businesses. However, most small
business construction companies do not have the balance sheet strength necessary to obtain surety
construction bonds that are required for government projects. Iron Eagle currently has bonding capacity
in the tens of millions of dollars, and plans to grow this to over one hundred million dollars of bonding
capacity in 2011.
Ideal Time for Business Construction Consolidation: 99% of construction companies in the U.S.
have fewer than 100 employees. In this difficult economy, on their own, these small businesses can find
it very difficult to obtain credit and surety bonds required for federal, state, and municipal building
projects.
Strong Management Team with Government Relations Experience: Iron Eagle’s management
team brings decades of experience in construction, government contracting, defense, finance,
operations, and business development. Management of each of the companies to be acquired have 15-
25 years industry experience, intend to stay with the company and are economically motivated to
increase shareholder wealth. Iron Eagle’s team of Washington, D.C. professionals and advisors are well
positioned to help facilitate being awarded significant government construction projects.
Compelling Growth Strategy: Iron Eagle’s strategy is to acquire synergistic profitable construction
companies to achieve growth through increased surety, improved operations, and enhanced contracting
opportunities. This enhances our ability to win and complete government and private construction
projects and to grow much faster than as standalone entities.
High Return on Investment Business Model: Based on its analysis of the market, Iron Eagle believes
that for every $1 million in equity capital raised, Iron Eagle can obtain between $10 million to $15 million
in bonding insurance. Conservatively assuming a 10% EBITDA margin, this means that a $10 million
project generates a $1 million EBITDA over an average length of one year.
Benefits of Public Company Platform: Iron Eagle believes its growth objective is best served via a
public company strategy. The benefits of pursuing its strategy through a public vehicle include improved
bonding capabilities, a lower cost of capital and the use of public company shares as a form of currency
to acquire target companies. This will provide a staged exit strategy to owners of profitable regional
construction companies and align the interests of company management with those of Iron Eagle
shareholders.
Shares Outstanding:
11,543,134 shares outstanding as of Sep 30 2010
As of February 2011, the company executives say that the entire Float is between 400,000 - 500,000 shares.
http://www.otcmarkets.com/stock/IEAG/company-info
http://www.ironeaglegroup.com/management.html
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