CENTURY MINING CLOSES FLOW-THROUGH SHARE FINANCING
Blaine, WA: Century Mining Corporation (CMM: TSX-V) announced today that it has closed a non-brokered private placement of 13,482,141 flow-through shares at a subscription price of C$0.13 per flow-through share for gross proceeds of C$1.75 million. The remaining balance of approximately $250,000 is expected to close on or before April 3, for total gross proceeds of $2.0 million. This financing was originally announced on March 24, 2009. Century paid a finder’s fee of 6% cash, and broker warrants equal to 6% of the number of flow-through shares purchased by investors introduced to the Company. All of the securities issued under this private placement are subject to a four-month hold period. The proceeds of this flow-through share financing will be used for exploration at the Company’s Lamaque property in Québec and a computer modeling project to further increase gold reserve and resource ounces.
The funds from this financing in addition to positive cash flow from the Company’s operations in Peru will allow Century to advance the development of the Lamaque project while a larger debt financing is finalized.
Century also said today that since announcing a US$65 million debt financing on March 24, the Company has received two additional proposals for a large project financing to restart mining operations at Lamaque from North American and European investors. Regarding the subsequent proposals, Century stated that it intends to proceed with the debt financing as described in the March 24 press release, although the Company will give due consideration to any alternatives that will expedite the Company’s growth strategy and enhance shareholder value.
Margaret Kent, President and CEO of Century commented, “We are very happy to see renewed confidence in Century Mining as we move forward with the Lamaque project. There was significant interest from investors in our most recent offering, resulting in oversubscription of the flow-through financing. While we recognize the importance of accommodating as many investors as possible, the decision to limit the offering to $2 million was made to minimize dilution of the Company’s shares beyond what is necessary to advance the project.”
About Century Mining Corporation Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 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. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124 ounces of gold, respectively.
“Margaret M. Kent” Chairman, President & CEO For further investor information, please contact: Brent Jones, Manager of Investor Relations
E-mail: bjones@centurymining.com Phone: (877) 284-6535 or (360) 332-4653 Fax: (360) 332-4652
Website: www.centurymining.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
3 comments:
1) The added (large) financing interests in Century represents a contingency plan just in case something should go wrong in the 11th hour (which appears to be unlikely). It represents a greater comfort level in restarting Lamaque.
2) Century is going to look at the alternative proposals to see if they can help to expedite Century's production and enhance shareholder value (Peggy and Ross are major shareholders now - perhaps our largest shareholders now). My guess is that they will see if they can take advantage of the depressed junior gold sector during this crisis period. I don't mind, just as long as she stays away from boneheaded legal disputes like the Sulliden/Algamarca situation or anything else that is heavily controversial. She needs to demonstrate company stability, and begin to deliver from our current assets - demonstrate operational success. Accretive acquisitions are good and welcomed (especially if it helps to diversify away from only having one or two producing assets - only having 1 major producing asset is risky, for all the obvious reasons), but future external growth needs to be done smartly.
Looking good. Nice to have choices
for a change. Wonder if 1 of the other proposals id from Wega. LMAO
Things are starting to look really positive again. One of the important points from today's news is that Century is sending the message that they will honour their existing agreement with the $65 million lenders even if someone else offers a better deal. We've been on the wrong end of people reneging on previous agreements, starting with the Poderosa sellers, MRI and Trafalgar.
However it does remind the lenders that if there is any delay or second thoughts about their commitment, Century does have other options.
I'm still amazed at the favourable terms of the $65 million financing. Gold Wheaton today announced a $100 million debt agreement with Sprott Securities. Their interest rate is 10% and GLW is issuing 125 million warrants. Gold Wheaton's market cap is over $350 million compared to Century's $24 million.
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