Continental Precious Highlights Dissident Shortcomings
06 December 2012 - 6:58AM
Marketwired
Continental Precious Minerals Inc. (TSX:CZQ) (the "Company" or
"Continental") wishes to assure shareholders that it will not be
pressured into hasty, irresponsible actions by a dissident
shareholder pre-occupied with unpredictable, short-term swings in
the company's share price.
Ed Godin, chief executive officer, notes that Continental is one
of only a handful in the junior mining exploration sector that has
survived the ups and downs of the global commodity cycle for a
quarter of a century.
Mr. Godin said: "Our cash reserves now total more than $12
million, giving us a cushion that few other junior exploration
companies can match." Continental has advanced its Swedish
properties on a budget of just $19.7 million (as of August 31,
2012) with minimal dilution to shareholders.
Continental shareholders are due to elect directors for the
coming year at the annual meeting on December 20, 2012.
Shareholders are urged not to cast their votes in favour of the
dissident's nominees.
"Should the dissident nominees succeed in seizing control of
Continental, your investment will be entirely at the mercy of a
group with highly questionable motives and credentials," Mr. Godin
said.
-- The group's ringleader, Mr. Sharad Mistry, boasts that he was previously
vice-president for financial services at Pure Energy Visions Corp., a
supplier of batteries. He has also spent time in the automotive, apparel
manufacturing, retail, biotechnology research and franchising sectors.
After Mr. Mistry succeeded in a proxy fight and gained control of
International Sovereign Energy Corp., shareholders lost wealth.
-- Another nominee, Mr. Robert Perry, has several decades of experience in
the Toronto stock exchange's listings department, which is hardly
relevant to Continental's business. Fresh into retirement, he is a
member of the audit committee of a public company that until November
28, 2012 was listed on the Ontario Securities Commission's website as a
reporting issuer in default.
-- The remaining two nominees, Ms. Carmen Diges and Dr. Laurence Curtis,
are a lawyer and a research analyst respectively. Ms. Diges has no
experience as a director of a public company. Dr. Curtis has
consistently presided as a director over poorly performing public
companies.
Furthermore, none of the dissident nominees owns Continental
common shares except Mr. Mistry, who owns or controls a paltry 0.3%
stake. Despite such meagre holdings, the dissidents are seeking to
take over the entire board.
The company poses three pertinent questions to Continental
shareholders:
-- If the dissident nominees had been in control of Continental over the
past few years, would the company have the healthy treasury it does
today?
-- If the dissident nominees abandon the flagship Viken project in favour
of "other acquisitions or joint ventures in the resource business",
could Continental end up as a shell for a reverse take-over, similar to
the fate of International Sovereign Energy Corp.?
-- If Mr. Mistry holds only 0.3% of the shares of Continental, does he
really have a meaningful interest in Continental and why would you allow
him to control the board?
Attention Continental Precious shareholders:
You can voice your disapproval of the dissidents. If you have any questions
or require assistance, please contact Kingsdale Shareholder Services Inc. as
follows:
Phone Toll Free: 1-866-879-7650
Fax Toll Free: 1-866-545-5580
Outside North America Call Collect: 1-416-867-2272
About Continental Precious Minerals Inc:
Continental is a multi-mineral exploration company with multiple
interests and exploration licences in Sweden. Since March 2005, our
primary goal has been to advance its Swedish assets. We are also
evaluating other opportunities as they emerge in current market
conditions.
Contacts: Continental Precious Minerals Inc. Ed Godin President
& CEO (416) 805-3036 (416) 848-0790 (FAX)godine@rogers.com
Kingsdale Communications Inc. Bernard Simon Vice-President (416)
867-2304 (416) 867-2271 (FAX)bsimon@kingsdalecommunications.com