Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

October 26, 2006 09:00 ET

Continental Precious Minerals Announces Pricing for Equity Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 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 the pricing of its proposed equity offering referred to in its press release of October 4, 2006 under which Max Capital will act as lead agent on a private placement to raise up to $10 million on a best efforts basis. Canaccord Adams will be a member of the syndicate. Under the private placement, the Company will issue up to 7,692,308 units of the Company at a price of $1.30 per unit. 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. Max Capital has an option to increase the size of the private placement by up to 20% at the same issue price.

The agents will be entitled to receive a cash commission of 8% of the aggregate gross proceeds of the private placement and broker warrants for the purchase of that number of units equal to 10% of the total number of units issued in the private placement.

The parties are working towards a closing date of not later than 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 under the private placement 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 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