Tuesday, April 21, 2009

Side note - 3.4M warrants set to expire

It's a win win situation for Century. Those warrants are help by Wega and carry a strike price of $1.17. They expire in May, within 9 to 40 days from today. Naturally, if the warrants happen to move into the money before they expire then it would mean that Century's share price has increased rapidly - 600% of what it is today. It would also mean an extra $4M Cdn cash for Century. If the warrants expire (which is likely, even if the share price moves to above $1.17, as it would be too short of a time period for Wega to feel comfortable making that commitment, especially since they vindictively sold us down from $.30 to $.03 in their effort to kill the company, IMO) then it means we reduce our FD share count by 3.4M shares. This reduction can partly offset the 10M warrants to be issued to Union Securities, once the deal has been closed off. As a result, if we were to combine the 2 events then it would mean our net increase of FD shares over the next few weeks will only be 6.6M, as oppose to 10M. This is aside from recent $2M Flow-through financing of course. Assuming our $65M US debt financing goes through, which is still looking positive, it would mean we incurred minimal equity dilution to completely clean up our balance sheet and restart Lamaque - prior to any future accretive initiatives of course.

4 comments:

Anonymous said...

so hope they open soon cuz i want to go back to work

relic said...

You worked at Lamaque? If so Im sorry you have been out of a job. It is interesting to have someone who who works there post here. Do you own shares in Century?

juha said...

centurymining.com says "service unavaliable" maybe NR soon, let's see.. now or tomorrow my humble guess

Anonymous said...

yes i work there ,no i dont have share whit century cuz century wen they close the mine they dont have enough money to pay us so it make a big hole in my budget you see , but the lamaque mine is very rich in gold still got potential in undergroud