AMN - GHANA: Pinecrest funds to support Enchi development

Pinecrest Resources Ltd intends to conduct a non-brokered private placement of up to 15 million shares of the company for gross proceeds of up to C$3 million. Proceeds will be used to advance the exploration and development of the 100%-owned Enchi Gold Project in Ghana and for general corporate purposes.

Pinecrest has 64.3 million shares issued and outstanding with the board and management owning a 40% equity interest and Kinross Gold Corporation owning an approximate 17% equity interest.

Upon closing of the private placement, Pinecrest will have approximately 79.3 million shares issued and outstanding.

The company also announces the appointment of Luke Alexander as president, chief executive officer and director; Douglas Forster, an existing director, as non-executive chairman; and Ms Omaya Elguindi as a director of the company effective immediately.

Chairman Douglas Forster said: “We are very pleased to welcome Luke Alexander as president, CEO and director of Pinecrest and Omaya Elguindi as director of the company.

"Luke is a capital markets and natural resource finance professional and he brings a wealth of mining knowledge, contacts and experience to the Pinecrest executive team and Board.

"I have previously worked with Luke on Newmarket Gold and Calibre Mining where he had a significant impact on institutional investor awareness and capital campaigns.

"Omaya is the founder of several highly successful companies and brings an abundance of valuable business experience, fresh insight and expertise to our board. Our fellow director Blayne Johnson has seen first-hand the significant impact Omaya can have on a young company when a technology start-up they worked on generated exceptional returns for shareholders.”

Forster continued: “I would like to thank Ryan King who has served as president and CEO of Pinecrest since 2017 and he will remain a director of the company.  Ryan has done an excellent job in advancing Pinecrest and our Enchi Gold Project and I look forward to continuing to work with Ryan as a valued member of the Board.”

Alexander said: “I am very excited to join Doug and the rest of the Pinecrest team. In my 15 years of covering the global natural resources sector, I have always viewed them as one of the best and most respected teams in the business.

"Ghana is a great country to operate in with a long history of gold mining. The Enchi project with over 1-million ounces of gold in inferred resources and significant exploration upside has been overlooked by the market and is an excellent cornerstone asset to grow Pinecrest.”

The Enchi project is road accessible, is on the Ghanaian power grid and is along the eastern margin of the Sefwi gold belt that hosts multi-million-ounce producing mines such as the Kinross Chirano Gold Mine 70km north of Enchi and past producing Bibiani Gold Mine.

Enchi Project includes seven prospecting licences comprising a total 216sqkm land package. Previous work carried out includes RC and diamond drilling (52,385 metres in 646 drill holes), 13,799 metres of trenching in 102 trenches, airborne geophysical surveys and soil sampling which resulted in an inferred resource of 1.07 million ounces. A preliminary economic assessment has been conducted on three main gold deposits - Boin, Nyamebekyere and Sewum.

All gold deposits within the inferred resource are open for expansion down-dip and along strike, particularly the Boin deposit that has undrilled internal gaps in the well-defined structure of up to 400 metres in strike length.

Additional new high priority targets include Boin Northwest and Kojina Hill both within 10km of the main Boin deposit where previous work completed includes trenching and drilling.

www.pinecrestresources.com