More Century Press

Century is starting to get some notice, primarily due to its recent increase in share price. In this MineWeb article it is at the top of a list of companies showing the greatest gains in the past year in percentage terms:

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=81673&sn=Detail

Here's an excerpt:

Century Mining stays on top; this week it announced high grade intercept results from exploration drilling at its existing Lamaque mine in Canada. Century is just one example of a stock price previously sold down to "priced to go bust" levels during the worst latter months of 2008. It secured financing, a key to recovery, around 31 March.

The key to the company's success still remains the closing of the previously announced financing that was estimated to close in approximately 21 days from March 24, which would be sometime this week if all goes well.

It is Jim Sinclair's opinion that many of junior gold companies have been beaten down to ridiculously low levels by naked short selling. He speculates that the reasons they haven't covered yet is to force predatory financing terms on those juniors that need to raise cash to survive. If that is the case with Century and PK does pull off this financing and there is a significant short position on Century, then we could see some short covering after the financing closes.

Looking at the trading patterns of Century's stock for the past 9 months, it didn't need short selling to drive it down to the low single digits as Wega took care of that, but it is interesting to note that they had an accomplice in Canaccord. Since June of 2008, Canaccord has had net sales of 22 million shares. This wasn't institutional sales either as the only remaining large institutional holder didn't sell their shares until last December when they sold their 11+ million shares to PK and RB.

I suspect that a substantial portion of the 22 million in net Canaccord sales were for clients that were shorting the stock.

Here's the text of the Jim Sinclair article:

Why would an organized short seller not cover in the marketplace even after having accomplished extremely low prices in Gold juniors?

The main purpose of this new multi-year attack of the entire investment group of junior exploration, development and even producing shares has as its goal “To prevent the field from obtaining financing.”

The plan of the organized shorts is not to re-buy their short positions back in the marketplace but rather to by preventing the companies from normal financing do the following:

1. Force by necessity the company to do participation financing on predatory terms on extremely exciting properties.

2. Force the company by necessity to do private placements with warrants and options that favored the private placee to the degree of dilution to the present stockholder that is egregious.

3. Force by necessity the company to accept loans terms based on their property sure to result because of short timeline in the failure on the note and title on the property to pass to the hands of the private loan note placement party.

This explains the enigma of no cover.

The strategy of defense has been to determine any and all other means of financing rather than the normal chain of broker dealer networks now making more money from the perpetrators than the operating companies.

http://www.jsmineset.com/