TORONTO, Feb. 27, 2020 /CNW/ - Continental Gold
Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the
"Company") is pleased to announce that it has been advised by Zijin
Mining Group Co., Ltd. ("Zijin") that Zijin has received the
Canadian Investment Canada Act approval, as well as all three of
the required regulatory approvals from the People's Republic of China for the
previously-announced plan of arrangement (the "Transaction")
involving the Company, Zijin and 2727957 Ontario Inc. (the
"Purchaser"), a wholly-owned subsidiary of Zijin.
As previously disclosed, the Transaction provides for the
acquisition by the Purchaser of the issued and outstanding common
shares of the Company ("Common Shares") by way of a statutory plan
of arrangement under the Business Corporations Act
(Ontario). Each Continental
shareholder will receive cash consideration of C$5.50 for each Common Share held.
The Transaction is expected to be completed within 10 business
days, subject to satisfying certain other closing conditions.
Following closing of the Transaction, the Common Shares will be
de-listed from the Toronto Stock Exchange and will not be available
for trading on the Toronto Stock Exchange or the OTCQX
International.
About Continental Gold
Continental Gold is the leading
large-scale gold mining company in Colombia and is presently developing its
100%-owned Buriticá project in Antioquia. Buriticá is one of the
largest and highest-grade gold projects in the world and is being
advanced utilizing best practices for mine construction,
environmental care and community inclusion. Led by an international
management team with a successful record of discovering, financing
and developing large high-grade gold deposits in Latin America, the Buriticá project is on
schedule with mechanical completion anticipated during the first
quarter of 2020. Additional details on Continental Gold's suite of
gold exploration properties are also available at
www.continentalgold.com.
Forward-Looking Statements
This news release contains
or refers to forward–looking information under Canadian securities
legislation, including but not limited to statements regarding the
anticipated closing of the Transaction, the timing for delisting of
the Common Shares, the development and construction of the Buriticá
project, advancing the Buriticá project, the economic effect of the
mine, and future plans and objectives of the Company, and is based
on current expectations that involve a number of significant
business risks and uncertainties. Forward–looking statements are
subject to other factors that could cause actual results to differ
materially from expected results. Readers should not place undue
reliance on forward–looking statements. Factors that could cause
actual results to differ materially from any forward–looking
statement include, but are not limited to, the possibility that the
Transaction will not be completed on the terms and conditions, or
on the timing, currently contemplated, and that it may not be
completed at all, due to a failure to satisfy, in a timely manner
or otherwise, conditions of closing necessary to complete the
Transaction or for other reasons, the possibility of adverse
reactions or changes in business relationships resulting from the
announcement or completion of the Transaction, an inability to
advance the Buriticá project to the next level, failure to convert
estimated mineral resources to reserves, capital and operating
costs varying significantly from estimates, the preliminary nature
of metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects and the other risks involved in the mineral exploration
and development industry. Specific reference is made to the most
recent Annual Information Form on file with Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward–looking statements. All of the
forward–looking statements made in this news release are qualified
by these cautionary statements and are made as of the date hereof.
The Company assumes no responsibility to update them or revise them
to reflect new events or circumstances other than as required by
law.
SOURCE Continental Gold Inc.