Tuesday, April 19, 2011

Concerned Shareholder Update

We wish to thank our many fellow shareholders that have contacted us with words of encouragement and suggestions regarding our press release in connection with the proposed Plan of Arrangement between Century Mining and White Tiger Gold.

We have been unexpectedly inundated by your emails and messages since our press release dated April 18, 2011. Please forgive us if we are temporarily unable to keep up with replies to your kind messages. We also wish to acknowledge that we have had emails from shareholders that were completely unaware of how other shareholders felt about the Plan of Arrangement prior to the press release.

Many shareholders have inquired as to what we expect to accomplish as a result of our press release. Our intention with the press release was to let you, our fellow shareholders, know what our views are with respect to whether we can support the proposed Plan of Arrangement and that we feel that at this time we cannot support it, for the reasons we set out in in the press release.

For those of you that have asked, we are not currently intending to solicit proxies;we expect that raising the level of discourse with respect to the Plan of Arrangement will lead to better information being available so that all shareholders can make their own fully informed decisions as to whether they will support the Plan of Arrangement.

Our legal counsel has advised that the Plan of Arrangement must obtain the approval of the Ontario Superior Court of Justice before it can proceed. For our part, we are evaluating all options which may include making an application to address the Court during the proceedings by Century to obtain the Interim Order or, in the event the Plan of Arrangement is approved by the shareholders, at the Final Order stage of the Plan of Arrangement.

We greatly appreciate your kind words and support.

The Concerned Shareholder Committee

Nu2au had an excellent observation / question about the WTG share price (on Stockhouse)

This is my Stockhouse comment to his original post:


TRUTH vs LIES---why we are going to win...

Long time ago I came accross the following quote from Mahatma Gandhi: "When I despair, I remember that all through history the ways of truth and love have always won. There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall. Think of it---always!"
TRUTH vs LIES...no contest. Case closed!

Do Not Solicit No Votes

We must be very careful not to actively solicit No Votes for Registration in the Anti-Merger Registration.  We can post all we want on all of the reasons why we think the merger is a bad idea, and why we have personally voted our shares as being against the merger, but we must let others decide whether they wish to add their shares to the Anti-Merger Table.

Soliciting of votes, when a takeover/merger has been announced, may be in violation of securities law and we certainly don't want any of the contributors to the blog to be facing legal action.

CMM - Operating Gold Mines - Quebec & Peru - Canadian Gold Producer with significant GOLD Reserves

I believe the title says it all and yet we are currently trading at $0.37 to $0.38 touching upon the 52-Week Low.

The wonderfully written NR by our intelligent committee has greatly contributed to our goal for fairness and success.

With any luck, the Committee’s NR opened the door to a stronger understanding in how Max and his minions have carefully calculated the taking over of CMM in a mindless unfair and manipulative fashion.

A message to Max and his minions: No you cannot have our money, our shares, our retirement, our RRSP’s, our Mutual Funds and so on which we worked DAM HARD for. Welcome to Canada where the minority shareholders are no pushovers and dam Bloody F’ing intelligent...

White Tiger - PLUMMETTING!!

Down 45% since Mar 12.

Crash & Burn Baby. Crash & Burn.

IAMGOLD or Kinross?

I've spent quite a bit of time lately sorting through a list of gold producers of relevant size to identify white knight candidates for CMM. Based on a number of factors including valuation, cash costs, location of assets, growth strategy and available cash, I believe Kinross (KRG) and IAMGOLD (IMG) are the strongest candidates (there are other strong candidates… but these two are the strongest). I have contacted both companies regarding the wonderful opportunity to make a highly accretive acquisition. If any of you (including members of our committee) have contacts with upper level management of either of those companies, please feel free to get into contact with them to make a pitch as well.

I believe CMM is a particularly good fit for IMG. IMG’s mines are located in countries with relatively higher political risk, so buying CMM would help diversify their mine portfolio into more politically stable countries and attract greater investor interest. In the next year, IMG will be experiencing declining production (before their growth projects kick in during 2013); acquiring CMM would immediately help offset that decline. On a run-rate basis, IMG will have similar cash costs to CMM (~$550/oz). IMG trades at ~$7100/oz of 2011 production and ~$200/oz of reserves & resources. This compares to CMM which is trading at ~$2000/oz of 2011 production and ~$83/oz of reserves & resources; obviously this would be a highly accretive acquisition for IMG. Furthermore, IMG is flushed with cash having recently divested minority interest (18.9%) of a mine in Ghana for $667mm. The mine is expected to produce 181k oz of gold a year. IMG management would look really damn smart if they sold a minority stake in an African mine at a reasonable valuation and used part of that money to acquire an extremely undervalued mine located in Canada and Peru. And I didn’t even mention the fact that CMM has massive exploration upside.

Obviously, a well capitalize buyer like IMG would not be afraid of CMM’s past liquidity issues and would have no problems finding the right engineers to properly develop our Lamaque mine. It makes so much sense for IMG to acquire CMM that it shouldn’t even take much convincing. However, we do need to make sure that their management is aware of this incredible opportunity. NOTE: only contact their management if you know someone there and please don’t pester them with a million emails.

EDIT: I've deleted the posts in the comment section because they were off-topic.

Dudley-Do-Right Comes to Moscow-John Helmer Article

Thanks to Doc for posting this:

John Helmer, Moscow

The three greatest Canadians of all time are Glenn Gould, Pierre Trudeau, and Dudley-Do-Right. A poll of Canadian businessmen in Moscow recently recommended Wayne Gretzky and Bobby Orr to displace the first two. The Canadian Broadcasting Commission nationwide poll of 2004 put Tommy Douglas and Terry Fox at the top. Then too, Gordon Lightfoot (“If You Could Read My Mind”) was at no. 33 and Leonard Cohen (“Bird on the Wire”) at No. 46.

Nobody has ever challenged Dudley-Do-Right, who also wins the handsomest Mountie of all time award. Although Dudley stopped appearing in 1970, he keeps getting his man.

This time it’s not Snidely Whiplash but Maxim Finsky (right)

The tale of Finsky’s plotting in the Canadian goldmining sector has already been told on March 31. A week later, Mikhail Prokhorov joined the plot. Since the start of this month, the Finsky vehicle White Tiger Gold (WTG:CN) has lost 14% of its market capitalization. Yesterday, after Dudley-Do-Right made his appearance, the share price fell 5%. That’s value destruction totaling C$51.7 million.

1-month share price chart for White Tiger Gold

And what has Snidely Whiplash been up to? — the takeover by one goldminer he controls White Tiger Gold, of Century Mining (CMM:CN), a second goldminer he also controls. Since March 31, CMM’s share price has fallen by 19%; in yesterday’s trading, it dropped 6%. Value lost, C$39 million over the past six weeks.

What happened yesterday was the release of a detailed analysis of the takeover plans of Finsky and several of his Canadian associates by a group of Canadian shareholders in Century Mining.

The allegations against Snidely, I mean Finsky, are grave. He and his associates are charged with conflict of interest in misrepresenting the underlying value of the assets in the proposed combination of goldmining assets, and strong-arming Century Mining’s minority shareholders by imposing a break-fee penalty as large as 5% of the company’s market capitalization at the time the White Tiger takeover was announced. As Century Mining’s market capitalization has subsequently dwindled, this C$13.5 million penalty has risen to 8% of the total. Violations of various Canadian exchange rules have also been charged in releases from the group.

Here is their analysis. In Moscow Finsky was asked, for the third time, to respond. He declines.

Century Mining Corporation
Concerned Shareholders

Read more: http://www.businessinsider.com/dudley-do-right-comes-to-moscow--steps-on-maxim-finskys-plot-2011-4#ixzz1JySZiyDh

Monday, April 18, 2011

Century Mining Corporation Grants Stock Options

BLAINE, WASHINGTON--(Marketwire - April 18, 2011) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that it has granted a total of 930,000 stock options, including 650,000 options to independent directors and the balance to employees of the Company. The stock options are exercisable into common shares of Century at an exercise price of C$0.425 per share for a period of five years. Century's common shares closed at C$0.425 on the TSX Venture Exchange on April 14, 2011.

Century has 434,036,751 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan, a maximum of 43,403,675 shares are available to be issued pursuant to the exercise of options at this time. Including this grant of 930,000 options, a total of 14,921,667 shares have been reserved for issuance pursuant to outstanding option grants. A further 28,482,008 shares are available for issuance pursuant to future option grants at this time.

About Century Mining Corporation

Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

Daniel J. Major, President & CEO

For comments

With regards to the Concerned Shareholders NR (below).