Tenajon Resources Corp.
TSX VENTURE : TJS

Tenajon Resources Corp.

June 12, 2008 08:30 ET

Tenajon Closes Gold Asset Sale to Kansas Partner

Shareholders to Receive Shares of Pinnacle Mines Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2008) - Tenajon Resources Corp. (TSX VENTURE:TJS) ("Tenajon") and Pinnacle Mines Ltd. ("Pinnacle") are pleased to announce that they have closed the transaction announced on April 21, 2008 and Pinnacle has now purchased Tenajon's wholly owned subsidiary, 0781639 B.C. Ltd. (the "Corporation"). The Corporation holds an undivided 40% ownership interest in and to the Kansas Claim and a 100% ownership interest in and to the Summit Lake property. Pinnacle purchased the Corporation for an aggregate deemed purchase price of approximately $3,015,000 (the "Acquisition"). The Kansas Claim and the Summit Lake property are both located near Stewart, British Columbia. Pinnacle now owns a 70.6% interest in and to the Kansas Claim and 100% of the Summit Lake Property. The remaining 29.4% undivided interest in the Kansas Claim is owned by Mountain Boy Minerals Ltd.

Based on a NI 43-101 compliant Technical Report on the Silver Coin Property (which encompasses the Kansas Claim) prepared by Minefill Services, Inc. of Seattle, WA in April 2007, upon completion of the purchase, Pinnacle will have control over 70.6% of 364,307 ounces of gold resources in the measured and indicated category (7,597,054 tonnes grading 1.492 g/t gold) plus 719,599 ounces of gold resources in the inferred category (10,776,659 tonnes grading 2.077 g/t gold) on the Kansas Claim and now own 100% of the past producing Summit Lake gold property. On the entire Silver Coin property, Pinnacle controls approximately 67.8% of 423,003 ounces of gold resources in the measured and indicated category (9,707,497 tonnes grading 1.355 g/t gold) plus approximately 65.8% of 947,988 ounces of gold resources in the inferred category (15,947,629 tonnes grading 1.849 g/t gold).

D. Bruce McLeod, President and CEO of Tenajon stated "We are pleased to complete this transaction which has successfully consolidated the ownership of two highly prospective gold assets within the Stewart camp, and will allow Tenajon shareholders to directly benefit from further success in exploring and developing the Silver Coin and Summit Lake properties."

"We are very happy to complete the acquisition and excited about advancing the further potential of both projects. As announced by Pinnacle on May 15th, a $2.5 Million exploration program is currently underway on Silver Coin including Kansas which is aimed at expanding the known resource" said Paul Saxton, President and CEO of Pinnacle Mines Ltd.

Pinnacle has issued 13,500,000 fully paid shares of Pinnacle ("Pinnacle Shares") and shall reimburse Tenajon up to $200,000 in cash in respect of reclamation deposits, exploration costs incurred by Tenajon on the Summit Lake property and certain other expenses. Under the terms of the Acquisition, Tenajon is required to distribute the Pinnacle Shares to its shareholders on a pro-rata basis by way of a plan of arrangement (the "Arrangement"). The Pinnacle Shares are subject to a four month hold period expiring October 12, 2008. Tenajon has granted to the management of Pinnacle a voting proxy on all of the Pinnacle Shares, which shall expire on completion of the Arrangement. Tenajon has also granted Pinnacle an option to purchase the 3% net smelter royalty held by Tenajon on the Summit Lake property by payment to Tenajon of $115,000 in cash.

Tenajon shareholders shall receive approximately one share of Pinnacle for each 4.68 shares of Tenajon which they hold based on the current number of Tenajon shares issued and outstanding. The number of shares to be distributed will be subject to an adjustment based on the actual share structure at the record date of October 13, 2008.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by A. Alex Walus, M. Sc., P. Geo. of Pinnacle Mines Ltd., a Qualified Person as defined by NI 43-101.

On Behalf of the Board of Directors

TENAJON RESOURCES CORP.

D. Bruce McLeod, President

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Investor Contacts:
    Tenajon Resources Corp.
    Bruce McLeod
    (604) 687-7545
    or
    Tenajon Resources Corp.
    Brad Kopp
    (604) 687-7545
    (604) 689-5041 (FAX)
    Website: www.tenajon.com