TORONTO, ONTARIO--(Marketwire - Nov. 20, 2012) - A concerned shareholder of Continental Precious Minerals Inc. ("Continental" or the "Company") has announced the filing of a circular and the YELLOW proxy, which is in the process of being mailed to Continental shareholders, calling for the replacement of the Company's existing directors. The concerned shareholder is asking Continental shareholders to vote for change by electing a new board of directors (the "Board") at the upcoming Annual and Special meeting of shareholders to be held on December 20, 2012.
IT IS TIME TO UNLOCK THE POTENTIAL OF YOUR INVESTMENT
The proposed change to the Board is because:
- Continental had cash on hand of $32 million as of August 31, 2007, which is now reduced to approximately $14 million as of August 31, 2012, all while making little progress in developing its main project, the Viken MMS Licence in Sweden
- The price of Continental's common shares has underperformed consistently for the past five years
- The current market capitalization of Continental is less than its cash position
- Management is entrenched. For the past 15 years, due to the current Board adopting a 50% quorum requirement, no shareholder votes submitted on the election of directors have ever been counted
- Leading independent proxy advisory firms have consistently recommended that Continental shareholders WITHHOLD their vote from the current Board for failure with good corporate governance practices
The concerned shareholder's team brings the knowledge, experience and a sense of urgency required to inject new ideas and strategic perspectives into Continental and will act as catalysts on behalf of many disenfranchised shareholders to halt the erosion of shareholder value.
A NEW DIRECTION FOR CONTINENTAL
The new Board will make it their first priority to undertake an urgent review of the status of the Viken project. This review will include a technical appraisal as well as a revised valuation based on the current financial conditions of the marketplace. The objective of this review is to establish whether such a project is suited to Continental and its current treasury. In conjunction with this review, the new Board will identify alternate options to maximise shareholder value; such choices could include other acquisitions or joint ventures in the resource business. If need be, the new Board will call upon independent appraisals of projects that best fit the cash position of the Company. Commensurate with these activities, the new Board will seek to reduce the corporate burn rate with a budget that will be approved and monitored by the Board and the Audit Committee.
Highest Level of Corporate Governance
The new Board will be fully committed to the highest level of corporate governance, including: individual director elections at all future annual meetings or other meetings where directors are up for election; formation of separate nomination and compensation committees fully comprised of independent directors; adopting an amendment to the by-laws of the Company to reduce the quorum requirement for all matters to be decided at shareholder meetings to a level more consistent with past voting attendance at shareholder meetings for the Company; and, any and all such other action which will allow the Company to be seen by Shareholders to be fully open, transparent and up to date with current standards of good corporate governance.
Regardless of how many shares you own, all Continental shareholders are urged to read the information circular prepared by the concerned shareholder, and to seize this opportunity and vote the YELLOW proxy to ensure change.
Shareholders who have voted the management proxy and wish to support the concerned shareholder have the right to change their vote by simply executing a yellow proxy. A later dated yellow proxy replaces a previous recorded vote.
Time is of the essence, YELLOW proxies must be returned no later than December 17, 2012 at 5:00 p.m. (Toronto Time).
If you have any questions or require any assistance in executing your proxy, please call CST Phoenix Advisors at:
North American Toll Free Number: 1-800-332-7449
Outside North America, Banks, Brokers and Collect calls: 1-201-806-2222
North American Toll Free Facsimile: 1-888-509-5907
For ease of voting and up to date information please continue to visit www.unlockcontinental.com
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations of the concerned shareholder and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate.
The concerned shareholder does not assume any obligation to update any forward-looking statements contained in this press release, except as required by applicable law. Please refer to the concerned shareholders' circular for further information regarding the risks of these statements.