|
|
|
|
Thu Oct 1, 2009 Continental Announces Private Placement To Raise $25
Million
|
|
October 1, 2009, Vancouver, BC - Continental Minerals
Corporation ("Continental" or the "Company") (TSX Venture: KMK;
OTCBB: KMKCF) is pleased to announce that it has entered into a
private placement agreement (the "Agreement") with a wholly owned
subsidiary of Zijin Mining Group Co., Ltd. ("Zijin Mining") as part
of a C$25 million private placement (the
"Offering").
Pursuant to the Agreement, Zijin Mining has
agreed to purchase 21,121,495 common shares of the Company (the
"Shares"), at a price of C$1.07 per Share, for gross proceeds to
Continental of C$22,599,999.65. The balance of the Offering has been
subscribed for by other non-related parties. A commission equal to
6% of the proceeds from the Offering is payable.
Zijin Mining
will be entitled to appoint one director to the board of directors
of the Company. Zijin Mining has also agreed to provide additional
key support to the Xietongmen Project, including assistance in
obtaining all permits, approvals and licenses required for
development and operation of the Xietongmen mine and to assist the
Company in maintaining good relationships with appropriate
departments of the central government of the People's Republic of
China and the provincial level government of the Tibet Autonomous
Region.
The Offering is subject to approval by the board of
directors of the Company and the receipt of all regulatory
approvals, including from the TSX Venture Exchange. The Shares
issued pursuant to the Offering will be subject to a four month hold
period in accordance with applicable Canadian securities laws. The
Shares issued to Zijin Mining will also be subject to a voluntary
pooling agreement between Zijin Mining and the Company.
The
proceeds of the Offering shall principally be used for engineering
and development of the Xietongmen Project in China and for general
corporate purposes.
Zijin Mining is a leading Chinese mining
group engaged in the exploration, mining and refining of gold and
base metals at its mines in China and internationally. Zijin Mining
is China's largest gold producer and third largest copper producer.
The shares of Zijin Mining are listed on the Hong Kong and Shanghai
stock exchanges.
Zijin Mining Chairman Chen Jinghe said
"We see the investment in Continental as an opportunity to
aggressively expand our footprint in China by investing in a robust
project in the final permitting stage."
Continental
President and CEO Dave Copeland said "Zijin Mining is a highly
respected entrepreneurial mining group and the introduction of Zijin
Mining will allow us to aggressively advance the permitting and
development of the Xietongmen Project. Our goal is to build an
economically robust project that integrates high standards of
environmental performance and brings real benefits to the region.
Continental and the Xietongmen Project are in a unique position at
an opportune time to take advantage of China's tremendous need for
copper materials, development projects and investment opportunities
within its economy."
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration requirements is available.
For additional
details, please visit the Company's website at www.continentalminerals.com or contact Investor
Services at (604) 684-6365 or within North America at
1-800-667-2114. On behalf of the Board of Directors
David
Copeland President & CEO
The TSX Venture Exchange does
not accept responsibility for the adequacy or accuracy of this
release.
This release includes certain statements that may be
deemed "forward-looking statements". All statements in this release,
other than statements of historical facts that address exploration
drilling, exploitation activities and other related events or
developments are forward-looking statements. Although the company
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices, exploitation and exploration successes, continuity of
mineralization, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, geopolitical uncertainty and political and economic
instability, changes in government policies regarding mining and
natural resource exploration and exploitation, the risk that the
above-referenced merger transaction may not be completed within the
time frame contemplated or at all and continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments
may differ materially from those projected in the forward-looking
statements. For more information on Continental Minerals
Corporation, Investors should review the Company's annual Form 20-F
filing with the United States Securities and Exchange Commission at
www.sec.gov and its
home jurisdiction filings that are available at www.sedar.com. |
|
|
You can view the Next
News Releases item: Tue Oct 20, 2009, Continental Completes $25
Million Financing
You can view the Previous
News Releases item: Tue May 19, 2009, Continental: Initial
Estimate Shows Substantial Resources In Continental's Newtongmen
Copper-Gold Deposit
You can return to the main News Releases page,
or press the Back button on your
browser. | |
|
|