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Continental Lists Preferred Shares on the TSX Venture Exchange
Continental Lists Preferred Shares on the TSX Venture Exchange
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":"\nContinental Lists Preferred Shares on the TSX Venture Exchange\n\n\n Oct. 13, 2010 (Newsfile Corp.) -- Vancouver, British Columbia--(October 13, 2010) - Continental Minerals Corporation (TSXV:KMK) (OTCBB:KMKCF) (TSX-V:KMK; OTCBB:KMKCF) announces that its application to list its outstanding class of non-voting redeemable preferred shares (the “Preferred Shares”) on the TSX Venture Exchange has been accepted by the Exchange. There are 12,483,916 Preferred Shares, which were authorized and issued pursuant to a 2001 BC Supreme Court order made in connection with reorganization. That reorganization saw Continental’s Harmony Gold (OOTC:HMGLF) (TSXV:H) (NYSE:HMY) Project transferred to a subsidiary of Taseko Mines Limited (AMEX:TGB) (TSX:TKO), for securities that are redeemable for Taseko common shares which will be used to redeem the Preferred Shares. The redemption timing and exchange ratio terms of the Preferred Shares for Taseko shares were pursuant to the 2001 arrangement, made dependent on the occurrence of certain possible value-realization events related to the Harmony Project but the terms provided that the Preferred Shares must be redeemed for Taseko shares in any event by October 16, 2011. The number of Taseko shares potentially issuable to redeem the Preferred Shares is based on a formula, but as long as Taseko shares trade below C$10.00 the number is fixed at 6,277,000 Taseko shares, meaning that each Preferred Share will be entitled to receive by no later than October 16, 2011, 0.503 Taseko common shares. However, if Taseko shares trade higher than C$10.00, then the number of Taseko shares receivable by the Preferred Shares as a class is determined by dividing $62.77 million by the higher Taseko share price. The Preferred Shares are not redeemable before October 16, 2011 nor can they be retracted by the holders before then. If the Arrangement with Jinchuan Group (the “Jinchuan Arrangement”) announced September 17, 2010 proceeds, it is planned, subject to ongoing negotiations with Taseko, to propose to holders of the Preferred Shares as a class that redemption of the Preferred Shares for Taseko shares be accelerated to occur just before closing of the Arrangement, which is targeted for late 2010. The Taseko shares will be subject to certain contractual hold period restrictions, which wi...