Pinetree Capital Ltd. Acquires Securities Of Mega Precious Metals Inc.
December 14, 2010
TORONTO, Canada (December 14, 2010) Pinetree Capital Ltd. (TSX: PNP), announces that on December 14, 2010, as a result of the acquisition of Rolling Rock Resources Corporation (“Rolling Rock”) by Mega Precious Metals Inc. (“Mega Precious”), it acquired ownership of 3,630,600 common shares (“Common Shares”) and 600,000 common share purchase warrants (the “Warrants”) of Mega Precious. Each Warrant entitles the holder to acquire one common share of Mega Precious at a price of $0.75 until February 25, 2012. In the event that the Warrants are fully exercised, these holdings represent approximately 6.9% of the total issued and outstanding common shares of Mega Precious as of December 14, 2010, calculated on a partially diluted basis assuming the exercise of the Warrants only. As a result of this transaction, Pinetree and its joint actors collectively held, as at December 14, 2010, an aggregate of 12,271,395 common shares of Mega Precious, including the Common Shares, and the Warrants. Of these totals, Pinetree owns 10,130,600 common shares, including the Common Shares, and the Warrants directly. In the event that the Warrants are fully exercised, the holdings of Pinetree and its joint actors represents a total of 12,871,395 common shares of Mega Precious, or approximately 20.9% of all issued and outstanding common shares as at December 14, 2010, calculated on a partially diluted basis assuming the exercise of the Warrants only. In the event that the Warrants are fully exercised, the direct holdings of Pinetree represents a total of 10,730,600 common shares of Mega Precious, or approximately 17.4% of all issued and outstanding common shares as at December 14, 2010, calculated on a partially diluted basis assuming the exercise of the Warrants only.
These transactions were made for investment purposes and Pinetree or its joint actors could increase or decrease their investment in Mega Precious depending on market conditions or any other relevant factor.
Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the Province of Ontario and its shares are publicly-traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP”. Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree’s investments are primarily in the resources sector: Uranium and Coal, Oil & Gas, Precious Metals, Base Metals and Potash, Lithium and Rare Earths. Pinetree’s investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities.
For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com
|Sheldon Inwentash||Richard Patricio|
|Chairman & CEO||Vice President, Legal and Corporate Affairs|
|Pinetree Capital Ltd.||Pinetree Capital Ltd.|
|130 King Street West, Suite 2500||130 King Street West, Suite 250|
|Toronto, Ontario, Canada, M5X 1A9||Toronto, Ontario, Canada, M5X 1A9|
|Website: www.pinetreecapital.com||Phone: 416-941-9600|