Monday, April 14, 2008

Century Mining sues Stockhouse poster for defamation

It's all GoldenBull's fault! LOL!

Century Mining Corp (C:CMM)
Shares Issued 162,965,695
Last Close 4/11/2008 $0.20

Monday April 14 2008 - Street Wire
by Mike Caswell

Century Mining Corp. and its president, Margaret Kent, are suing a Stockhouse forum poster for defamation. The company claims a poster using the name TheGoldenBull placed messages on the forum that mean Ms. Kent is a liar, has committed securities fraud, and is physically unattractive and stupid, among other things.
The suit was filed in B.C. Supreme Court on April, 10, 2008. It identifies the plaintiffs as Century and Ms. Kent. The company says it does not know the defendant's true name, and it only names him as John Doe, aka TheGoldenBull, in the suit.

According to Century's suit, TheGoldenBull published defamatory posts from Sept. 27, 2006, to Feb. 20, 2008, on Stockhouse. The company includes 15 recent ones in its suit, four of which are below.

Dec. 11, 2007, post

One, posted on Dec. 11, 2007, reads as follows:
"So....what you are basically saying is that the equity raising, done at 40cents, was used to cover the hedging losses? My god, what a joke for a company you have here.

"Well, the facts are, the dumb cow hedged about 30,000 ounces of future production to raise about half a million dollars, which she has already spent. The unrealized loss on 30,000 ounces is over $3m, do the math.
...

"You have to hand it to the market, its Always right. The pumpers are struggling like mad to keep this POS above 30 cents. They will fail, the market is always right. 20 cents or lower by x-mas, it will happen.

"As Century is being run into the ground by this stupid hag ALL might argue a cf multiple of 10x is too aggressive, especially given the precarious cash situation, run down operations, missed targets, executive staff flight, massive payments due for property payments, retrenchments, leases on idle equipment, underwater hedge book, massive requirement for capex ...etc,etc,etc......

"A multiple of 5x cf is probably more realistic, and that gives you a share price of 10cents, or one dime (good call Canon5). Personally, I wouldn't even pay 10 cents for this swirling turd."

Jan. 21, 2008, post

Century also complains that the poster said the company is a related party to the Sanchez Paredes group. Although the suit does not directly explain why an association with the group is defamatory, a Jan. 21, 2008, post that it quotes repeatedly refers to something called "S-P." It came as Century was in the midst of its attempted takeover of Sulliden Exploration Inc.

"Hoppy,

"Poor CMM Kitty, kerrrr SPLAT!!!!!!!

"Do they get to look at only CMM's books or can they look at the related parties in the transaction, S-P, etc?

"S-P's books must be fun to read, let's see what is the accounting treatment for an (alleged) coke shipment seized by the DEA?? Alleged bribes to judges, politicians, police, and hit men; is this treated as an expense or a future receivable? Boy, Century is really going to have their hands full merging these two companies. Lol.
"But seriously, the real reason CMM is falling like a turd from a pigeon is that they appear to be out of cash. I believe they said (last cc) they had about $1.5m, which when you subtract the $1m per quarter they have to pay their (alleged!) coke dealing partners, leaves about 36 hours of working capital in the old kitty. Looks like another private placement on the way.
...

"Please do your own due diligence, and remember the S-P group is only alleged to be coke dealers and money launderers, as reported by Peru's top newspaper and investigating journalist and must be assumed to be innocent until convicted!

"The Golden Bull!"

Jan. 22, 2008, post

The suit quotes several other posts of a similar flavour, one referring to "inconsistent information spewed forth by the old fat sow," and another attacking the company's hedging position, which it says was 24,000 ounces of gold at less than $700 per ounce.

The posts also continued to speculate that the company will need cash soon.
"Get ready for the next unit placement. Peg will issue shares at any price, even down to a penny; she does not give a toss about ANY of you small shareholders. As long as her insider buddies get the insider track to short in advance of the announcement, all is A-OK for her and her insider buddies," reads a Jan. 22, 2008, post.

Another post, on Jan. 24, 2008, continued in the same vein.

"Pollyanna,

"You should really do your posting BEFORE you take your medications.

"And now, when old Pig fails to pay up her $1m per quarter to these S-P drug runners that she put your company in bed with she will have a fine mess on her hands. They don't seem like the type that will take IOU's- more like fingers.

"Again, have a look at the thorough and objective report from Rosens on your blighted company. Good god. How on earth CMM are even allowed to trade is a miracle. In fact if the TSX was doing its job Century would be suspended from trading without further notice.

"And one more point, the hedge book is less than $700, not $740 and 24,000 is more than 1 years production.

"GB"

Feb. 1, 2008, post

Another post, on Feb. 1, 2008, speculates on production at the company's San Juan mine after a change of the author of its National Instrument 43-101 report.
"San Juan is reportedly doing just about 12,000 ounces per year, annualized from one good quarter. They were desperate for cash, so what do you do when you are desperate for cash? You cut back on development and high grade the place. A la Sigma. We will see in about 4 month's time.....

"And you say (or Ms reliable Peggy (lol) says...) they will increase production at SJ (and SL!) 100% in less than 12 months. December let me tell you a thing about mining. Even good, well run companies with real management and execution ability have trouble increasing production by that amount in that little time. Pure fantasy - It ain't gonna happen. When has old Peg increased production at any of her operations? ever?"

The post then gets into the company's Lamaque mine in Quebec (which was once owned by Placer Dome Canada Ltd.).

"So why did the original owner [leave] all these many years of ounces in the reserve category? Well, the most likely answer is because they were un-minable, tied up into pillars, etc. Placer employees did not mine these ounces and they ARE professional miners.

"And how would Peg even know? The place is still under water, they don't have the permit, or the water is too polluted to release without building an expensive treatment plant."

"And the mine plan with the capital costs and the NPV story. Well, it was done in a big hurry, in-house with no outside verification. Guaranteed, the numbers came right out of her a$$. Classic Peggy bait and switch- she will have a new story in six months."

Additional posts on Feb. 19, 2008, and Feb. 20, 2008, contained similar statements. One on Feb. 18, 2008, states that cheap unit private placements are reserved for "insider buddies" who create rumours to pump the stock on bulletin boards, among other things.

Century and Ms. Kent complain that the postings mean that Ms. Kent is incompetent and has committed securities fraud, among other things. They also allegedly mean that Century is not a worthwhile investment, that Ms. Kent has exploited the company's low share price for personal gain and that Century's management cannot be trusted.

Century complains that the defendant knew that each of the posts was false, and published them with malice. Many people have viewed the posts, and as of the date of the lawsuit, TheGoldenBull continues to post false and defamatory messages, the company claims.

As a result of the posts, Ms. Kent and Century say they have suffered damage to their reputations, loss and expense.

They are seeking general, special and punitive damages, plus a permanent injunction restraining the defendant from publishing further statements that are defamatory of Century and Ms. Kent.

The lawsuit was filed on the company's behalf by Dianne Prupas.

Century closed Friday at 20 cents, down a penny.
© 2008 Canjex Publishing Ltd.

1 comment:

roxy14 said...

Wow. Guess they should change the name of our company to SUE. Hope thats
not the only news we get this week.