Vol. 1,
issue #45, 19 January 2001
Diamond dredging project gets funding
Pinnacle Resources has announced that it has agreed to provide $400,000 funding for a diamond recovery project to be conducted by Societe Alpha Plus, a Guinea-based corporation with mining rights to a 2.5km section of the Kanteya River on the border of Guinea, West Africa and Mali.
The project involves application of modern dredging and recovery operations to the riverbed in order to reclaim the diamond enriched sand and gravel.
Pinnacle intends to fund the project under a loan facility agreement, and expects to receive 100 percent of the net operating revenues until 150 percent of its investment has been recovered and then 20 percent of the revenues for the duration of the project.
"We're pleased to have the opportunity to participate in this project," said Glen "Trig" Gamble, president. "The Kanteya River has yielded an excellent diamond harvest for previous operators immediately up stream and down stream of Alpha's claims. If successful this project will provide significant cash
flow for Pinnacle Resources."
Gamble added that the base agreement also provides Pinnacle with a first right of refusal to participate in future projects scheduled by Societe Alpha Plus.
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