TORONTO, ONTARIO--(Marketwired - Apr 14, 2014) - Continental Precious Minerals Inc. (CZQ.TO) (the "Company" or "Continental") is pleased to announce that it has signed an option agreement with Boxxer Gold Corp. (TSX VENTURE:BXX) to earn up to a 75% interest in the DOK copper-gold porphyry property (the "Option Agreement") located approximately 40 kilometres southwest of Telegraph Creek, in northwest British Columbia, Canada (the "DOK Property"). The DOK Property consists of 26,365 acres.
Under the terms of the Option Agreement, Continental has the option to earn a 60% interest within 4 years by incurring total property expenditures of C$2.0M and making total cash payments of C$200,000. The cash payment schedule is as follows: C$50,000 due within 5 days of signing and three payments of $50,000 each on or before the first, second and third anniversaries of the effective date of the Option Agreement.
Upon Continental earning a 60% interest, the Company shall have the option to increase its interest in the DOK Property by an additional 15% to 75% by spending an additional US$3.0M on the DOK Property within 3 years. If a 75%, interest is earned by Continental the project will revert to a joint venture between the Company and Boxxer, with the Company being the operator and each party being responsible for the expenses on the project relative to each party's interest, and if either party fall below 10% it will revert to a 1% net profit interest.
Caution Regarding Forward-looking Statements
This press release contains "forward-looking information" under Canadian securities law. All statements that are not historical facts are forward-looking statements, including, but not limited to, statements as to the exercise of the option under the Option Agreement. There is no assurance that Continental will maintain and exercise the option as proposed. Forward-looking information involves inherent known and unknown risks, uncertainties and assumptions that could cause actual results and future events to differ materially from those anticipated by such statements, including, among others, economic and regulatory changes, exploration of the property not being economically viable, delays in receiving permits, accidents and delays in completing exploration activities, as well as those risks disclosed under the heading "Risk Factors" and elsewhere in Continental's documents filed from time to time with the regulatory authorities and available on www.sedar.com, not all of which are in the control of Continental. The forward-looking information contained herein is made as of the date hereof. Other than as specifically required by law, we undertake no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.