Continental Precious Minerals Inc.-Press Release.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Continental Precious Minerals Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension 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 Rab (räb), Ital. Arbe, island (1991 pop. 9,205), 40 sq mi (104 sq km) off Croatia, in the Adriatic Sea. One of the Dalmatian islands, it is a popular seaside resort. Fishing and agriculture are the main occupations. 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 Finder's fee A fee a person or company charges for service as an intermediary in a transaction. finder's fee The charge levied by a person or firm for putting together a deal. comprised of (i) cash equal to 8% of the aggregate gross proceeds received by the Company and (ii) finder finder, in law. Ordinarily the finder of lost property is entitled to retain it against anyone except the owner. It is larceny, however, for the finder to keep the property if he knows or can easily determine who owns it. 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 Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). 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 The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. . THIS PRESS RELEASE WAS PREPARED BY CONTINENTAL, WHICH ACCEPTS RESPONSIBILITY FOR ITS ACCURACY. THE TSX VENTURE EXCHANGE TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THE INFORMATION CONTAINED HEREIN. Continental Precious Minerals Inc. (TSX VENTURE:CZQ) |
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