Continental Precious Minerals Inc. (TSX VENTURE: CZQ) (the "Company" or "Continental") is pleased to announce that it has entered into a collaboration agreement with Zencor Technology Ltd., a company that has represented to the Company that it owns proprietary technology developed to extract or separate kerogen and other minerals from alum oil shales. Under the agreement, an independent engineering firm will be selected and retained by the Company to conduct a scientific validation test for the purposes of establishing to the satisfaction of the Company that the proprietary technology is an economically effective tool for extracting or separating kerogen and other minerals from alum oil shales in Sweden. If the results of the validation test are satisfactory to the Company in its sole discretion and if the Company so elects, a pilot plant will be constructed, designed to use the proprietary technology to extract or separate kerogen and other minerals from alum oil shales in Sweden. The Company has agreed to pay for the costs of the validation test and, if the Company elects to proceed with a pilot plant, the costs of the pilot plant test, to a maximum of $1,000,000. The Company can at any time determine that it does not wish to proceed with either the validation test or pilot plant test.
Zencor will have worldwide right, title and interest in the proprietary technology, as it may be improved by the collaborative effort. Zencor has granted to the Company a perpetual, exclusive, transferable, royalty-free paid up licence to use and exploit the proprietary technology in Sweden. Zencor has also granted to the Company a royalty equal to 2% of gross revenues earned by Zencor in any way related to or derived from the use of the proprietary technology in the extraction or separation of minerals from alum oil shales.
In consideration, the Company will issue up to 100,000 common shares of the Company to Zencor subject to receipt of all regulatory approvals. The first 50,000 have been issued and the second 50,000 will be issued upon completion of the validation test.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding intended collaborative work to find a technology that is capable of extracting or separating kerogen and other minerals from alum oil shales. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, the Company's ongoing assessment of the technology subject to the collaborative effort. The forward looking statements contained in this press release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.
THIS PRESS RELEASE WAS PREPARED BY CONTINENTAL, WHICH ACCEPTS RESPONSIBILITY FOR ITS ACCURACY. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THE INFORMATION CONTAINED HEREIN.
Contacts: Continental Precious Minerals Inc. Ed Godin President (416) 805-3036
SOURCE: Continental Precious Minerals Inc.