Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

March 29, 2006 14:39 ET

Continental Precious Minerals Inc.-Press Release

TORONTO, ONTARIO--(CCNMatthews - March 29, 2006) - Continental Precious Minerals Inc. (TSX VENTURE:CZQ) (the "Company") announces that it has entered into a non-brokered private placement financing by a subscription agreement dated March 29, 2006 between the Company and RAB Special Situations (Master) Fund Ltd. ("RAB") providing for the issuance by the Company of 6,000,000 units at a price of $0.75 per unit for gross proceeds of $4,500,000. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of $1.00 until March 29, 2009. The 6,000,000 common shares included in the Units represent an approximate 37% interest in the Company.

Under the terms of the subscription agreement, 2,560,378 units were issued today, March 29, 2006 resulting in RAB holding 19.9% of the outstanding common shares. The remaining 3,439,622 units, as well as the common shares underlying the warrants issued today, will only be issued to RAB if shareholder approval for such issuance is obtained.

In connection with the transaction, the Company has agreed to pay a finder's fee comprised of (i) cash equal to 8% of the aggregate gross proceeds received by the Company and (ii) finder warrants of the Company equal in number to 4% of the number of warrants issued in the private placement. Of this, $153,622.68 in cash has been paid and 102,415 finder warrants issued in connection with today's issuance of 2,560,378 units, with the balance being payable when the remaining 3,439,622 units are issued. Each finder warrant entitles the holder thereof to purchase one common share at a price of $0.75 until March 29, 2008.

A special meeting of shareholders has been called for April 27, 2006 at which shareholders will be asked to approve a resolution authorizing the Corporation to issue the remaining units as well as the common shares underlying the warrants.

The securities issued pursuant to the financing are subject to a four month hold period, which expires on July 30, 2006.

The net proceeds are expected to be used to finance the Company's ongoing exploration and development of its mineral exploration properties, in particular the advancement of its project in Sweden towards a final feasibility study.

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