Tuesday, August 26, 2008

CMM Terminates Option To Purchase Rosario De Belen

BLAINE, WA, Aug. 26 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today that it has executed agreements terminating its option to purchase Mina Rosario de Belen, an operating gold and silver mine located in Peru. The agreements to purchase Rosario de Belen were originally announced on May 7, 2007.

As a result of the termination of the agreements, all of the shares of Mina Rosario de Belen have been turned back to the previous owners. In a separate agreement, all of the concessions have also been returned to the previous owners. The previous owners have assumed all of Rosario de Belen's accounts payable. The effect on the Century balance sheet will be a reduction in accounts payable of approximately $1.2 million. Century has already recorded a write-down in its financial statements related to the termination of the Rosario de Belen transaction.

Margaret Kent, President & CEO said: "The decision to terminate the Rosario de Belen deal is part of the Company's renewed focus on its core assets, specifically the recommencement of mining operations at Lamaque and the San Juan Mine."

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 in addition to its Canadian projects. The Company owns the Lamaque mine in Québec 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.

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"Margaret M. Kent"
Chairman, President & CEO

4 comments:

The Ref said...

Curious that we are seeing such large selling when this option termination was already announced with the write down.. I figured 4 cents would be as low as she would go. Our fearless leader has her stock charts upside down!!! LOL, not really.
Mike

Carib said...

Mike, I think the selling was unrelated to the news release as MacQuarie dumped 1 million shares at the opening bell and another million shortly afterward.

Macquarie has never been a buyer on the open market so it looks to me like the expiration of a 4-month hold period on a recent PP that they may have participated in and they wanted out.

Soon after that we had a repeat of that same situation with a Cannaccord seller who may have also participated in the same PP. That, no doubt induced some more panic selling.

I know I keep saying this, but 3 cents is a market cap of $5 million. I can't imagine anyone buying CMM for an uncontested bid of 3 cents.

nino said...

carib, how about an update on today's trades?

thanks

Carib said...

nino, today's trades have now been posted.