Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

November 28, 2006 16:32 ET

Continental Precious Minerals Closes $16 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - Nov. 28, 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") is pleased to announce that it has closed its previously announced private placement. Continental has issued a total of 12,307,691 units for gross proceeds of $16 million, each unit consisting of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $1.75 for a period of 24 months from closing. RAB Special Situations (Master) Fund Ltd. ("RAB"), the Company's single largest shareholder, participated in the private placement. Together with its prior holdings of the Company, RAB now holds 10,300,000 common shares of the Company, representing approximately 25.8% of the issued and outstanding shares. RAB also holds 9,150,000 common share purchase warrants.

As announced in earlier press releases, Max Capital Markets Ltd. acted as lead agent and Canaccord Capital Corporation was a member of the syndicate. In connection with the financing, the agents received a cash commission of 8% of the 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 (excluding the 1,098,846 units that were non-brokered).

All of the foregoing securities issued in connection with the financing are subject to a hold period of four months and one day from the date of issuance. This financing remains subject to final approval of the TSX-V. The proceeds obtained from the sale of units will be applied to working capital purposes and to further develop Continental's uranium project and the acquisition of additional strategic assets in Sweden.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the Company's intentions with respect to the use of proceeds from the private placement. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, any change in the Company's direction as a result of a variety of factors including the Company's ongoing assessment of exploration results, the decisions made by regulators or public or environmentalist opposition. 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