Piper Capital Inc.

Piper Capital Inc.

January 06, 2005 16:13 ET

Piper Announces Completion of Qualifying Transaction and Closing of Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PIPER CAPITAL INC.

TSX VENTURE SYMBOL: PCL.P

JANUARY 6, 2005 - 16:13 ET

Piper Announces Completion of Qualifying Transaction
and Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 6, 2005) - Piper
Capital Inc. (TSX VENTURE:PCL.P) ("Piper") announced that it has now
completed its previously announced qualifying transaction with respect
to the Golden Zone property in Alaska and closed its previously
announced brokered private placement in the amount of 6,895,000 units,
subject to final TSX Venture Exchange approval.

Completion of Qualifying Transaction

Piper issued 1,250,000 shares to Mines Trust Company ("Mines Trust") as
the final step in acquiring an initial 58.12% interest in the Golden
Zone property. The Golden Zone property constitutes Piper's principle
property and consists of 223 State of Alaska mining locations located
approximately 180 miles north of Anchorage, Alaska.

Piper has also appointed Mr. John Prochnau to its Board of Directors
effective upon the completion of the qualifying transaction as a
representative director of Hidefield Gold PLC under its previously
announced property option agreement with Hidefield Gold PLC. Pamela
Strand, a current director of Piper, has also been appointed the Chief
Operating Officer of Piper effective upon the completion of the
qualifying transaction.

Kingsdale Capital Markets Inc. acted as sponsor in connection with the
qualifying transaction and received, among other compensation, sponsor
warrants exercisable for 50,000 common shares of Piper until December
31, 2006 at an exercise price of $0.20 per share.

Closing of Brokered Private Placement

Piper has closed its recently announced brokered private placement in
the amount of 6,895,000 units at the price of $0.20 per unit. Each unit
is comprised of one common share and one-half of one transferable share
purchase warrant exercisable until December 31, 2005 at an exercise
price of $0.25 per share.

Kingsdale Capital Markets Inc., as agent, and other sub-agents received,
among other compensation, agent's warrants exercisable for in aggregate
784,250 common shares of Piper until December 31, 2006 at an exercise
price of $0.20 per share, a cash commission of $97,900 and a corporate
finance work fee of $17,500 plus GST.

All of the shares, warrants and any shares issued upon exercise of the
warrants are subject to a hold period and may not be traded until May 1,
2005 except as permitted by Canadian securities legislation and the TSX
Venture Exchange.

The proceeds of the private placement will be used for exploration
expenditures in connection with Piper's qualifying transaction and for
general working capital purposes.

The qualifying transaction and the private placement are subject to the
final approval of the TSX Venture Exchange. The Company expects to be
reinstated for trading on the TSX Venture Exchange within the next week.

News Release Required under Section 111 of the British Columbia
Securities Act and 141 if the Alberta Securities Act

Hidefield International Gold Holdings Ltd. of the British Virgin
Islands, a wholly-owned subsidiary of Hidefield Gold PLC of London, UK,
reports the purchase of 2,500,000 units of Piper effective December 31,
2004 at a price of $0.20 per unit. Each unit is comprised of one common
share and one-half of one share purchase warrant exercisable until
December 31, 2005 at an exercise price of $0.25 per share. The 2,500,000
common shares and 1,250,000 warrants currently held represent
approximately 28.3% of the issued capital of Piper assuming the warrants
were exercised. Hidefield International Gold Holdings Ltd. and Hidefield
Gold PLC do not have any present intention to acquire ownership of or
control over additional securities of Piper.

A copy of the report filed pursuant to the above-captioned provisions of
the applicable Securities Acts may be obtained by contacting Ken Judge
in London, UK at +44 20 7290 2280.

Anglo Pacific Group PLC of London, UK reports the purchase of 2,500,000
units of Piper effective December 31, 2004 at a price of $0.20 per unit.
Each unit is comprised of one common share and one-half of one share
purchase warrant exercisable until December 31, 2005 at an exercise
price of $0.25 per share. The 2,500,000 common shares and 1,250,000
warrants currently held represent approximately 28.3% of the issued
capital of Piper assuming the warrants were exercised. Anglo Pacific
Group PLC does not have any present intention to acquire ownership of or
control over additional securities of Piper.

A copy of the report filed pursuant to the above-captioned provisions of
the applicable Securities Acts may be obtained by contacting Peter
Boycott in London, UK at +44 12 9578 0001.

Mines Trust Company of Anchorage, Alaska reports the acquisition of
1,250,000 common shares of Piper effective December 31, 2004 pursuant to
a property option agreement. The 1,250,000 common shares currently held
represent approximately 10.4% of the issued capital of Piper. Mines
Trust Company does not have any present intention to acquire ownership
of or control over additional securities of Piper other than with
respect to share issuances proposed under its current property option
agreements with Piper.

A copy of the report filed pursuant to the above-captioned provisions of
the applicable Securities Acts may be obtained by contacting Dr. Charles
Hawley in Anchorage, Alaska at (907) 522-9200.



On behalf of the Board

Barry P. Domvile
President & Director


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Piper Capital Inc.
    Barry Domvile
    President and Director
    (604) 874-1314
    (604) 683-8544 (FAX)
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.