Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

November 02, 2006 16:30 ET

Continental Precious Minerals Announces Increase to Maximum Size of Equity Financing

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2006) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Continental Precious Minerals Inc. (TSX VENTURE:CZQ) (the "Company" or "Continental") today announced that RAB Special Situations (Master) Fund Ltd., a principal shareholder of the Company holding approximately 29.2% of the issued and outstanding shares of the Company, has indicated that it wishes to participate in the private placement ("Private Placement") referred to in the Company's press release of October 26, 2006. As RAB has indicated that it wishes to maintain its current percentage interest in the Company following the completion of the Private Placement, the number of units to be purchased by RAB will depend upon the number of units issued under the Private Placement.

As announced in the October 26, 2006 press release, Max Capital Markets Ltd. will act as lead agent in the Private Placement to raise up to $10 million on a best efforts basis. The Company has agreed to increase the size of the option granted to the agents to increase the size of the offering from up to 20% to up to 50%. If the option to increase the size of the Private Placement is exercised in full, the Company would issue a total of 11,538,462 units at $1.30 per unit. If RAB were to purchase that number of units as would allow it to hold 30% of the issued and outstanding shares following completion of the Private Placement, RAB's portion of the Private Placement would be approximately 3.6 million units. Each unit will consist of one common share of the Company and one-half of one warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $1.75 and will expire 24 months after the closing.

The Private Placement is expected to close on or about November 15, 2006. Completion of the Private Placement is subject to certain conditions, including, but not limited to, satisfactory due diligence, the execution of an agency agreement, the execution of subscription agreements with the subscribers and the receipt of all necessary regulatory approvals. The securities issued will be subject to a 4 month hold period from the date of closing.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding a proposed private placement. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, the ability of the agent to raise the funds, confirmation in writing of RAB's oral indication that it wishes to participate in the Private Placement and decisions made by regulators. The forward looking statements contained in this press release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.

THIS PRESS RELEASE WAS PREPARED BY CONTINENTAL, WHICH ACCEPTS RESPONSIBILITY FOR ITS ACCURACY. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THE INFORMATION CONTAINED HEREIN.


Contact Information

  • Continental Precious Minerals Inc.
    Ed Godin
    President
    (416) 805-3036