Continental Minerals Corp. agrees to buyout by Jinchuan Group

Resource company Continental Minerals Corp. announced Friday it has signed a letter of agcoal washing plant suppliersreement to be bought by China-based mining group Jinchuan Group Ltd., in a deal worth about $432-million. The deal would see 100% of Vancouver-based Continental’s roughly 166-million shares sold to Jinchuan on a fully diluted basis for $2.60 a share.

That price represents a 13% premium on Continental’s common share closing price as of Sept. 14, and an 18% premium on the volume weighted average trading price of the same shares over the 30-days ending Sept. 14. Continental’s board of directors is also proposing to include as part of the deal a special cash distribution of up to 10¢ per Continental share outstanding immediately prior to completion of the acquisition. The deal has the support of Continental’s board, according to the company.