Continental Precious Minerals Inc.

Continental Precious Minerals Inc.

September 03, 2010 16:02 ET

Continental Precious Minerals Adopts Shareholder Rights Plan

TORONTO, ONTARIO--(Marketwire - Sept. 3, 2010) - Continental Precious Minerals Inc. (the "Company" or "Continental") (TSX:CZQ) today announced that its board of directors has approved the adoption of a shareholder rights plan (the "Rights Plan") designed to encourage the fair and equal treatment of shareholders in connection with any takeover bid for the outstanding securities of the Company.

The Rights Plan is intended to provide the Company's board with adequate time to assess a takeover bid, to consider alternatives to a takeover bid as a means of maximizing shareholder value, to allow competing bids to emerge, and to provide the Company's shareholders with adequate time to properly assess a takeover bid without undue pressure. The Company's board is not currently aware of any pending or threatened takeover bid for the Company. The Rights Plan is similar to those adopted by other Canadian companies.

The Rights issued under the Rights Plan become exercisable only if a person acquires or announces an intention to acquire 20% or more of the common shares of the Company without complying with the "permitted bid" provisions of the Rights Plan or without the approval of the Company's board.

Should such an acquisition occur, Rights holders (other than the acquiring person or related persons) can purchase common shares of the Company at a substantial discount to the prevailing market price (as defined in the Rights Plan) at the time the Rights become exercisable.

"Permitted bids" under the Rights Plan must be made to all holders of the Company's common shares and must be open for acceptance for a minimum of 60 days. If at the end of 60 days, at least 50% of the outstanding common shares other than those owned by the offeror and certain related parties have been tendered and not withdrawn, the bidder may take up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender to the bid.

The Rights Plan will require ratification by the Company's shareholders within six months. If not ratified within six months from today, the Rights Plan and all of the Rights outstanding at the time will terminate.

The Rights Plan is also subject to acceptance by the TSX. A copy of the Rights Plan will be filed on SEDAR at following acceptance by the TSX, and can also be obtained from the Company upon written request.

About Continental Precious Minerals

Continental Precious Minerals Inc. is a multi-mineral exploration company with multiple interests and exploration licences in Sweden. Since March 2005, Continental's primary goal has been to advance its Swedish assets. The Company is also evaluating other opportunities as they emerge in current market conditions.

Contact Information

  • Continental Precious Minerals Inc.
    Ed Godin
    President and CEO
    (416) 805-3036
    (905) 276-4862 (FAX)
    Colin Languedoc
    Investor Relations Consultant
    (416) 367-5000 x225
    (416) 367-5390 (FAX)