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| | Fri Sep 1, 2006
Continental Closes Convertible Note Financing
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| | September 1, 2006, Vancouver, BC -- Continental Minerals Corporation ("Continental" or the "Company") (TSX.V-KMK; OTC.BB-KMKCF) announces that it has now received the gross proceeds of the $11.5 million Convertible Secured Note (the "Note") financing with Taseko Mines Limited ("Taseko").
Pursuant to the Note, Taseko has the right to convert the principal then outstanding, plus a 5% premium, into Continental common shares at $2.05 per share if the Note is exercised within the first six months or, at $2.25 per share if exercised in the second six months. Interest, at the rate of 16% per annum, is payable in cash, or at Taseko's election, in Continental common shares based upon the higher of $1.58 and the five day volume weighted average of the closing price of Continental's shares at the time the interest payment is due. The Note further provides certain rights to participate in future financings and is secured, the details of which are set out in Continental's news release of August 25, 2006. Any Continental shares issued pursuant to conversion of the Note or for payment of interest will be subject to a four month hold period to January 1, 2007.
Gerald Panneton
President and CEO
Continental Minerals Corporation
For further information:
Continental Minerals Corporation
Tel 604 684·6365
Toll Free 1 800 667·2114
www.continentalminerals.com
No regulatory authority has approved or disapproved the information contained in this news release.
Forward Looking Statement
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address the proposed merger, acquisition of additional property, exploration drilling, exploitation activities and events or developments that the company expects are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.
For more information on Continental Minerals Corporation, Investors should review the Continental's annual Form 20-F filing with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com. |
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