Fri Feb 18, 2011 Continental Updates Status Of Arrangement With Jinchuan Group
February 18, 2011 Vancouver, BC -- Continental Minerals Corporation (TSX-V:KMK, OTCBB:KMKCF) ("Continental" or the "Company") announces that it has delayed by 10 days the formal shareholders vote on the statutory Plan of Arrangement with Jinchuan Group Ltd ("Jinchuan"). The vote was scheduled for February 18 and is required as a principal condition for Jinchuan's proposed acquisition of 100% of Continental, as described in the Company's news releases of September 17 and December 20, 2010. Delaying the vote was necessitated by the need to clear certain remaining US Securities and Exchange Commission requirements. The Company is also advised by Jinchuan that it has obtained the key Chinese National Development and Reform Commission approval and believes that the other required Chinese regulatory approvals are in process and will be issued in the near future.
The vote is currently rescheduled for 2 pm Vancouver time, Monday, February 28, 2011 at the same location as disclosed in the proxy materials filed at www.sedar.com. Securityholders who have voted in favour and wish to continue to do so need do nothing further. Securityholders continue to have the right to revoke or change their vote prior to the commencement of the adjourned meeting. It is possible that materials containing some additional information will also be posted on SEDAR; however, if this happens it will be publicly announced. Proxies received to date from securityholders are overwhelmingly in favour of the transaction.
Jinchuan is a large China-based mining group and will be acquiring Continental through a statutory plan of arrangement process, which is subject to the terms and conditions of an Arrangement Agreement filed on SEDAR. The transaction values the common equity of Continental at approximately C$431 million.
BMO Capital Markets is sole financial advisor to Continental in connection with the proposed Arrangement. McCarthy Tétrault LLP acts as counsel to the special committee of the Board and McMillan LLP acts as general counsel to Continental.
Sino Resources Capital Pty Ltd. and Blake, Cassels & Graydon LLP are the financial and legal advisors to Jinchuan respectively in respect of the Arrangement.
Continental is a TSX Venture Exchange listed resource company associated with the Vancouver-based Hunter Dickinson Group of mining companies. Since 2005, Continental has focused on exploring and unlocking the value of its large Xietongmen copper-gold property in Tibet Autonomous Region, PRC.
Jinchuan Group is a large integrated non-ferrous metallurgical and chemical engineering enterprise engaged in mining, concentrating, metallurgy and chemical engineering. It produces nickel, copper, cobalt, rare and precious metals and also some chemical products such as sulfuric acid, caustic soda, liquid chlorine, hydrochloric acid and sodium sulfite, together with some further processed nonferrous metals products. The output of nickel and platinum group metals respectively accounts for more than 90% of the total in China. Jinchuan Group Ltd. is the largest producer of nickel-cobalt in China.