Friday, May 30, 2008

CMM Terminates Rosario de Belen And Algamarca Purchases

I will post the NR in the comment area.

http://www.newswire.ca/en/releases/archive/May2008/30/c6749.html

Where's the BEEF

So where's the 07 YE and Q1-08 financials???? This management is amazing! Incompetence at best! Last day, last hour before the financials come out OR the BCSC slaps CMM us with ANOTHER CTO. Guess it does effect the management since their are already under a CTO.
Well guess what, I didn't think it would happen but PLE has a larger MC than CMM. AND they don't even have a drill in the ground yet.
I have just about had it with the clowns that are running and RUINing our company. They must go. ALL of them. I guess a TO is the only way. I welcome it if gets rid of PK et al.

Have a nice weekend!

Sunday, May 25, 2008

A MUST listen

3rd hour part one 27 min 58 seconds in the interview with Eric King is an absolute must listen to.


http://www.financialsense.com/fsn/main.html

from LeGagneur on the TAM SH BB

Monday, May 19, 2008

CMM Closes Flow-Through and Unit Financings

It looks like they only got $1,560,750 from the combined financing ($.23 unit, $.25 FT and $.35 FT). This is even lower than the $2M I had hoped for (with my lowered expected view). Clearly, this is bad news. However, they could turn into good news if they are successful with bridge financing (as it would mean substantially less share dilution). It's unfortunate that they didn't mentioned in the NR if they are currently pursuing bridge financing - hopefully they are.

I will post the NR in the comment section of this post.

http://www.newswire.ca/en/releases/archive/May2008/19/c2042.html

Sunday, May 18, 2008

We made good strides last week (big picture wise)

From the NR: “Century awards Fortis Lead Arranger and underwriter mandate for Lamaque expansion financing of up to $70 million”

It’s not every day that a junior company (with a $28M market cap) is able to assign a LT Debt mandate to a company like Fortis (significant European financial institution), in an effort to secure $70M (2.5 times Century’s current market cap). I am not one to believe that a $55 (US) billion market capitalization company like Fortis would put their reputation at stake if they didn’t think Lamaque was the “real deal” at this stage of their DD process. By the way, $55 (US) billion makes Fortis 1,951 times greater in size (than Century) from a market cap standpoint.

From the NR: “Closing on the project loan facility will be subject to completing satisfactory due diligence, credit approvals, and negotiating loan and security documentation. The Company and Fortis anticipate having the facility in place within 4-5 months.”

It is positive to make it to this stage of the process, especially with a financial institution like Fortis. It seems like many of the people that write articles and newsletters have been commenting about how challenging it is for juniors to get financing for their projects (with the credit crunch and all). Century’s management has disappointed us lot IMO (hence our $.175 share price), but this is not one of those times.

On March 25’08, Century first told us about this particular (senior secured) LT Debt initiative. They were able to get interests from 4 banking and equity institutions at that time – during a period when the US economy was in severe turmoil (making the credit crunch even more severe). It is May 18’08 today, and although things are still rough in the US (and worldwide) it appears as if the markets have calmed down a bit. With Fortis not losing interest in Lamaque during those difficult months of economic crisis, it probably bodes well for our partnership with them. They could have easily taken their name out of the hat in March. I mean, even the US fed was in crisis mode – slashing 75 basis points at a time (from the interest rate). It is obvious to me that Fortis accepted the mandate because they see the potential of Lamaque:

* track record of 70 plus years of u/g mining at Lamaque
* 4.6M ounces of gold resource in the ground (43-101 compliant and BSCS approved) with those ounces being located only 0 – 1000 ft from the surface and with a 4.87 g/t grade (excludes West Plug o/p)
* 1.1M ounces of gold reserves established (and counting)
* full processing operation in place
* significant mining infrastructure already in place
* Lamaque in production and possibly being cash flow positive in a few months
* amazing exploration potential both within Lamaque and other Century properties located next to Lamaque


To summarize, if Fortis pulls out of the deal over the next 4-5 months (prior to finalizing) I do not believe that it will be due to the US and global credit crunch situation (given my reasoning above). Also, (although anything is possible) I would be very surprised if Fortis pulls out during the detailed DD process of Lamaque, as Lamaque appears to be very advantageous (also described above). Now, Fortis is the “Lead Arranger and underwriter” of the deal. I suppose it’s possible that Fortis may not get sufficient participation from other lenders. To be honest though, I am not too concerned about that. If Fortis likes Lamaque enough then I can see them underwriting a significant portion of the debt with their own money (be it undersubscribed or oversubscribed). As mentioned above, this is a company with a $55 (US) billion market cap. In addition, Century is only requesting $70M (relatively small potatoes for them), and nothing close to the $240M in LT Debt that Orezone mandated to their own Lead Arrangers and underwriters.

Anyway, while we wait for the LT Debt to close off, our main focus right now should be closing off the PP and secure bridge financing. I have absolutely no idea about what the actual PP amount looks like, but nevertheless I have lowered my expectations, given the length of time it has taken to close off the PP. I will now be pleased if the PP comes in around the $2M ballpark (although it would be nice to see something higher). Hopefully management is aggressively pursuing bridge financing, as I am of the belief that this is a strong possibility (created by the Fortis LT Debt mandate). In the past, I have noticed a number of situations (in the market) where approx. $10M in bridge financing was secured while companies were waiting for $50M type LT Debt amounts to be closed off. I am no expert at this, but it seems like common enough practice to me.

Production05

Thursday, May 15, 2008

Web Links Posted in Comments

Unfortunately when posting web links or email addresses in the Comment box, you have to include the html tags for the links to be functional. If you have posting privileges, and post an original post, then that is not an issue. Anyone can request posting privileges.

Thanks Relic, for the info on the Wega insider selling permission from BCSC. The link there is:

http://www.bcsc.bc.ca/comdoc.nsf/comdoc.nsf/webpolicies/7BC7D98FCAFEA2BB88257424007F25CC?OpenDocument

That would suggest that there is nothing to fear from Wega when the MCTO is lifted and lends credence to the theory that they might have been assured of changes for them to cease selling on April 16.

The email addresses posted by Cal Powers are:

Margaret Kent: mkent@centurymining.com

William (Bill) Sheridan, Corp Secretary: wsheridan@langmichener.ca

I noticed from today's trades that not a single share was sold at the bid. I've never seen that before.

Wednesday, May 14, 2008

Century vs Sulliden

As I write this CMM's share price is 17 cents and SUE's share price is 76 cents. 6 months ago Century was offering 0.72 shares of CMM for every SUE share.

Sulliden now has a market cap of over $60 million. They have a disputed interest in a low-grade deposit of 2 million resource ounces in Peru with no infrastructure. Clear and free title via the courts is anything but assured and that process is expected to take several years. That is all they have.

Century now has a market cap of $28 million - less than one-half of Sulliden's. They also have a disputed interest in the same property in Peru. If the odds of getting that property were 50-50, then they should have a similar market cap as SUE.

But Century also has 5 million oz of 43-101 compliant resources and 3 operating gold mines - the largest in mining-friendly Quebec and the other two are in Peru that are producing gold at 21,000 opy at a cash cost of $350/oz. - $400/oz. The total value of the mining infrastructure in Canada and Peru is in excess of $100 million. They also have substantial exploration potential at these and other properties.

What does these comparative valuations say about the lack of confidence in current management?

Monday, May 12, 2008

Century awards Fortis Lead Arranger and underwriter mandate for Lamaque expansion financing of up to $70 million

Monday May 12, 11:57 am ET

BLAINE, WA, May 12 /CNW/ - Century Mining Corporation (CMM: TSX-V), is pleased to announce the appointment of Fortis (Belgian-Dutch leading financial institution), as Lead Arranger and underwriter for a fully underwritten project loan facility of up to US$70 million to fund the Lamaque Underground Mine expansion project.

The project loan facility's primary use of proceeds includes capital expenditures to expand production to 115,000 ounces per annum, at an estimated cash production cost of $425 per ounce, associated hedging, working capital, and for general corporate purposes.

As announced on March 25, 2008 capital requirements for the Lamaque Underground Mine in 2008 total approximately $9.3 million. Going forward, Century expects capital expenditures for Lamaque of $25.5 million and $20.0 million in 2009 and 2010, respectively.

Closing on the project loan facility will be subject to completing satisfactory due diligence, credit approvals, and negotiating loan and security documentation. The Company and Fortis anticipate having the facility in place within 4-5 months.

Margaret Kent, President & CEO, commented: "We are very excited to have the support of Fortis. This debt facility will allow Century to achieve its medium and long-term objectives with respect to the Lamaque expansion project."

About Fortis

Fortis is an international financial services provider engaged in banking and insurance. Fortis offers its personal, business and institutional customers a comprehensive package of products and services through its own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalisation of EUR 35.1 billion (31/03/2008), Fortis ranks among the 15 largest financial institutions in Europe. Its sound solvency position, presence in more than 50 countries and dedicated, professional workforce of 60,000 enables it to combine global strength with local flexibility and provide its clients with optimum support. More information is available on www.fortis.com.

Press Contacts: Brussels: +32 (0)2 565 35 84

About Century Mining Corporation

Century Mining Corporation is an emerging mid-tier gold producer that is aggressively acquiring producing mines and exploration properties in Peru. The Company owns and produces gold at the Lamaque mine in Qu├ębec that historically has produced over 9.4 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Century subsidiaries have also recently acquired Rosario de Belen where it accounts for 100% of both gold and silver production. Century's growth strategy is to acquire gold producing assets in South America that will substantially reduce the Company's consolidated total cash cost of production and where there is exceptional exploration potential to expand production at these mines.

"Margaret M. Kent"
Chairman, President & CEO

Thursday, May 8, 2008

Check list (May 7th update)

1) Rosario tech rpt – Not needed (BCSC agreed)
2) New San Juan tech rpt – Done (BCSC approved)
3) Revised Lamaque tech rpt – Done (BCSC approved)
4) All BCSC issues resolved - Done
5) Y/E fin and elim MCTO – expected by May 15th (next week)
6) Update on LT Debt situation – nearing the end of the 45 day period (where proposals were expected to be reviewed)
7) Close off of PP – due
8) Lamaque’s Q1 performance - due
9) Lamaque’s April performance - due
10) Update on Rosario/Algamarca payment deferrals – no updates in a while
11) Potential of bridge financing (loan)?????
12) Direction of CEO position?????

Wednesday, May 7, 2008

NR: CMM Resolves All Issues With BCSC

Here is the link. You may have to copy and paste if the link doesn't work.

http://www.newswire.ca/en/releases/archive/May2008/07/c5780.html

Ricardo Campoy

He is on Century's board. He seems to have had 28 years of financing experience, including a wealth of project financing experience (both with debt and equity). Hopefully he will play a key role in Century's senior project financing initiative.

He seems to be in high demand by other companies also. An NR was issued yesterday by Bayswater Uranium (TSX:BAY) to announce that Mr. Campoy is now a Corporate and Financial advisor to Bayswater. Mr. Campoy is also the lead director for a US company called General Moly (AMEX:GMO). General Moly has a market capitalization of over $600M.

Saturday, May 3, 2008

Check list

1) Rosario tech rpt – not needed (BCSC agreed)
2) New San Juan tech rpt – Done (BCSC approved)
3) Revised Lamaque tech rpt – Done (BCSC approved)
4) Agreement on timing of Sigma o/p write-downs, release of Y/E financials and elimination of MCTO – From NR: “delayed for a short period of time”
5) Close off of PP – NR pending
6) Lamaque’s Q1 performance (target: 300 tpd or ___ ounces) – NR pending
7) Lamaque’s April performance (400 tpd target) – NR pending
8) Status of Rosario and Algamarca payment deferral situation

9) LT Debt, Mar. 25th NR: “To meet future capital needs, Century is currently engaged in preliminary negotiations with four separate banking and private equity institutions. Over the next 30 – 45 days Century will receive and review proposals from these groups for a senior project financing initiative regarding the Lamaque underground mine. Any potential financing package is not expected to be finalized until the third quarter of 2008.”

In my view, it would be in Century’s best interest to announce the institution that has been selected (along with signed term-sheet, if available) once they reach this stage. If the process is progressing well then they should be close to reaching this stage (given their published timeline). It would signal to the market that Century has been successful in making a significant step towards securing LT debt financing, in a market that is absolutely brutal to junior companies attempting to secure any type of financing. It would also demonstrate that Century’s assets are being viewed (by major financial institutions) as having significant value.

10) If Century is successful in reaching the signed term sheet stage with a LT Debt provider then it might open up possibilities of securing short-term bridge financing (to initiate long-term work on the project), as it often does with other companies? The LT Debt would not be finalized for at least another couple of months, even with up front term sheet signing. This difficult market situation will not help, but I suppose if we can make decent progress with LT Debt then it increases our chances for a short-term bridge loan (until the debt gets finalized). My feeling is that if the PP gets closed off (with near the targeted $ value) and the LT Debt progresses well, then I see the short-term bridge financing as non-crucial (optional or bonus even).

11) Will we have a new CEO appointed prior to AGM (per the wishes of an overwhelming percentage of blog viewers)? I believe the percentage is now up to 76 - that want a new CEO immediately.

12) Potential spin-out of Peru, and shares given to Century shareholders? A good conversion profile might be 1 Peru share for every 3 Century shares, which will enable the o/s Peru (newco) shares to be in the 60 – 65M range. I have absolutely no idea if the company is truly considering this option, but we all clearly recognize that we are receiving zero value for anything in Peru today. Personally, (if they are considering this) I think this decision should not be made until other key outcomes have occurred, and we ultimately know what happens to the share price of the collective company over the next several months. There are obvious (and potentially significant) pros to split Peru out immediately, but there are also pros for keeping it intact (i.e. Peru will allow Century to reach intermediate producer status quicker, and all of the publicity, share price and stability benefits that normally comes along with that accomplishment). Also, the whole Sulliden / Algamarca matter probably adds a very complex layer to the situation, and perhaps even makes it impossible to seriously consider a split-out of Peru assets at this time.

These are only (near-term) key events that come immediately to mind. I’ve probably missed a few.