By Sheri Kasprzak
New York, Aug. 25 - Continental Minerals Corp. said it will settle an $11.5 million private placement of secured convertible promissory notes with Taseko Mines Ltd.
The one-year note bears interest at 16%, is convertible into common shares at $2.05 each, plus a 5% premium, in the first six months and at $2.25 in the second six months.
The note is redeemable at 105% of the amount the full principal amount.
Upon conversion or redemption of the notes, Taseko may purchase up to 50% of any equity or convertible securities offered for up to five years.
Proceeds will be used for exploration on the Xietongmen property in Tibet and for working capital.
Vancouver, B.C.-based Continental is a mineral exploration and development company.
| Issuer: | Continental Minerals Corp.
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| Issue: | Secured convertible promissory notes
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| Amount: | $11.5 million
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| Maturity: | One year
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| Coupon: | 16%
|
| Price: | Par
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| Yield: | 16%
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| Conversion price: | $2.05 for first six months; $2.25 for second six months, plus 5% premium
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| Call: | Redeemable at 105% of full principal amount
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| Warrants: | No
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| Investor: | Taseko Mines Ltd.
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| Announcement date: | Aug. 25
|
| Stock symbol: | TSX Venture: KMK
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| Stock price: | C$1.58 at close Aug. 25
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