* In advanced talks with unnamed third party
* Says no assurances on outcome of discussions
By Euan Rocha
TORONTO, Sept 15 Continental Minerals KMK.V
said on Wednesday it is in advanced discussions with a third
party regarding a possible sale of the company.
The Canadian-listed exploration company, which is focused
on developing its Xietongmen copper-gold project in China's
remote Tibetan plateau, said that while it anticipates a speedy
resolution to the talks, it can give no assurances at this time
about the outcome.
Shares of the TSX Venture Exchange-listed company were
halted before market hours on Wednesday, at the company's
A spokesman for Continental declined to comment on the
reasons behind its request for a trading halt, which came into
effect hours before its announcement about the possible sale.
The Xietongmen project is expected to produce 116 million
pounds of copper and 190,000 ounces of gold and 2.4 million
ounces of silver annually over a 14 year mine life.
Continental said it has already received most of the
approvals required for the project. It is currently awaiting
the final mining license and project approval report.
Continental's two largest shareholders are diversified
Chinese miners Zijin Mining (601899.SS) and Jinchuan Group
[JCGRP.UL]. Zijin currently owns a 13.8 percent stake, while
Jinchuan owns 11.8 percent.
Canada's Taseko Mines (TKO.TO) owns a 5.1 percent stake in
the company, which has already seen its shares rise more than
90 percent in the last 12 months.
Shares of Continental, which has a market capitalization of
about C$350 million ($340 million), were halted at C$2.30
before trade began on Wednesday.
Earlier this month, Continental adopted a shareholder
rights plan, which acts as a poison pill in the event of an
unsolicited takeover bid.
Continental said the rights plan would give its board
adequate time to assess a takeover bid, consider alternatives
and allow competing bids to emerge. At the time, it also stated
that it was not aware of any pending or threatened takeover
The rights plan is set to trigger if one entity acquires 20
percent or more of the common shares without complying with the
"permitted bid" provisions of the plan, or without the approval
of the board.
(Reporting by Euan Rocha; editing by Rob Wilson)