Continental Precious Minerals Inc.
NEX BOARD : CZQ.H

Continental Precious Minerals Inc.

September 07, 2005 13:42 ET

Continental Precious Minerals Inc.: Press Release

TORONTO, ONTARIO--(CCNMatthews - Sept. 7, 2005) - Continental Precious Minerals Inc. (NEX:CZQ.H) (the "Company") announces that it has entered into an engagement letter with Canaccord Capital Corporation to assist the Company in completing a private placement of up to 2,000,000 units of the Company at a price of $0.55 per unit on a commercially reasonable basis.

Each unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of $0.80 for a period of 12 months following the completion of the offering.

Upon successful completion of the offering, Canaccord will receive a cash commission equal to 8% of the gross proceeds of the offering and broker warrants equal in number to 16% of the number of units sold pursuant to the offering. Each broker warrant will entitle Canaccord to acquire a common share at a price of $0.80 for a period of 12 months following the completion of the offering.

The securities issued under the offering will be subject to a four month hold period.

The net proceeds of the offering are expected to be used to fund exploratory drilling on the Company's mineral exploration licenses in Northern Sweden.

Completion of the offering is subject to regulatory approval.

Note: This press release may contain forward-looking statements. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements.

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