Continental Minerals Corporation announced today that a private placement agreement was entered into with a wholly owned subsidiary Zijin Mining Group Co. In the agreement, Continental will sell 21,121,495 common shares of their company and receive $22,599,999.65 in gross proceeds with the balance of the Offering being subscribed by other non-related parties. A commission equal to 6% of the proceeds from the Offering is payable.
One of the key details to the agreement is that Zijin will provide support to the Xietongmen Project and will also be entitled to appoint one director to the Continental Board. The proceeds of the Offering shall be principally used for development and engineering of the before mentioned Xietongmen Project in China.
Zijin is a young company based in China that has quickly become China’s largest gold producer. When asked what this agreement will mean to Zijin, Company Chairman Chen Jinghe was quoted as saying, “We see the investment in Continental as an opportunity to aggressively expand our footprint in China by investing in a robust project in the final permitting stage.”
Continental is led by their President and CEO Dave Copeland. Copeland is a renowned name in his field as a geological engineer and has over 30 years of experience through engineering design phases and initial development. When asked what this agreement will mean to Continental and the financial world, Mr. Cope said, “Zijin Mining is a highly respected entrepreneurial mining group and the introduction of Zijin Mining will allow us to aggressively advance the permitting and development of the Xietongmen Project. Our goal is to build an economically robust project that integrates high standards of environmental performance and brings real benefits to the region. Continental and the Xietongmen Project are in a unique position at an opportune time to take advantage of China’s tremendous need for copper materials, development projects and investment opportunities within its economy.”
Currently, Continental is trading in the $1.09 range but has been making strides lately and is starting to catch the eyes of investors on Wall Street. At these prices with a sound business structure, Continental may be a sleeping giant.