Pinetree Capital Ltd. Acquires Common Shares Of
War Eagle Mining Company Inc.
March 9, 2006
TORONTO, Ontario –
Pinetree Capital Ltd. (TSX: PNP), a Canadian investment company, announces that on March 9, 2006, it acquired ownership of 1,500,000 common shares (“Common Shares”) of War Eagle Mining Company Inc. (“War Eagle”) and 1,500,000 share purchase warrants (each, a “Warrant”) (each Warrant entitling the holder thereof to acquire one additional common share at an exercise price of $0.60 until
March 8, 2008). In the event that the Warrants are fully exercised, these holdings represent approximately 8.3% of the total issued and outstanding common shares of War Eagle as of
March 9, 2006, calculated on a partially diluted basis assuming the exercise of Warrants only. As a result of this transaction, Pinetree and its joint actors held, as at March 9, 2006, an aggregate of 1,832,000 common shares of War Eagle and rights to acquire an aggregate of 2,458,000 common shares of War Eagle upon exercise of convertible securities, including the Warrants (collectively, the “Convertible Securities”). Of these totals, Pinetree holds 1,582,000 common shares and the 1,500,000 Warrants directly. If Pinetree and its joint actors were to exercise all of these Convertible Securities, their combined ownership would represent a total of 4,290,000 common shares of War Eagle, or approximately 11.6% of such shares outstanding as of
March 9, 2006, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only. In the event that only the Warrants are fully exercised, the direct holdings of Pinetree represent approximately 8.6% of all issued and outstanding common shares of War Eagle as of
March 8, 2006, calculated on a partially diluted basis assuming the exercise of the Warrants only.
These transactions were made for investment purposes and Pinetree and each of its joint actors could increase or decrease their respective investments in War Eagle depending on market conditions or any other relevant factor.
Pinetree Capital Ltd. ("Pinetree" or the "Company"), which is publicly traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”, is a diversified investment, financial advisory and merchant banking firm focused on the small cap market. Pinetree’s investments are primarily in the resources sector: Oil & Gas, Uranium, Precious Metals and Base Metals.
Pinetree’s investment approach is to build a macro position in a sector, find the micro-cap opportunities in that sector and work with those companies to build them to commercial production and create an exit.
For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Pinetree’s results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. Pinetree disclaims any intent or obligation to update these forward-looking statements.
Investor Relations Contact for Pinetree Capital Ltd.:
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2810
Canada, M5X 1A9
Email: email@example.com Web Site: www.pinetreecapital.com