Monday, August 10, 2009

Century grants $.18 stock options to Director and Officers in lieu of cash bonuses and other compensation

Century Mining Grants Stock Options

BLAINE, WA, Aug. 10 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today that it has granted a total of 3,150,000 stock options, of which 2,950,000 were granted to directors and officers of the Company. The stock options are exercisable into common shares of Century at an exercise price of C$0.18 per share for a period of five years. Century's common shares closed at C$0.145 on the TSX Venture Exchange on August 7, 2009.

These options were granted to directors and officers of Century for significant progress on the development of the Lamaque project in lieu of cash bonuses and other compensation to management.

Century Mining has 197,978,400 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan, a maximum of 19,797,840 shares are available to be issued pursuant to the exercise of options at this time. Including this grant of 3,150,000 options, a total of 9,989,750 shares have been reserved for issuance pursuant to outstanding option grants. A further 9,808,090 shares are available for issuance pursuant to future option grants at this time.

3 comments:

production05 said...

At least they didn't make the price $.145, which is something they would have done in the past.

I gather that some of these options are in place of the (fat cat) cash bonuses we saw paid out to management in the past. At least they are willing to take a chance on financing going through, instead of demanding up front cash payout.

I still believe that Peggy needs to press release the terms relating to Completion Commitment and other key terms of the Debt Covenant, even if it's preliminary and subject to change prior to the deal closing. The terms might be reasonable, but how on earth are investors to know? Investors need to know that they are not at risk of losing everything (if they feel the terms are too risky).

IMO, shareholders, new potential investors and the rest of the market are feeling uncomfortable about the details, hence the $.13 share price. There are very few bidders. I don't believe that price is being pushed down. I just think that there are severe lack of buyers.

As mentioned, Century should attempt to press release more details about the deal in order to provide a greater comfort level to everyone.

Peggy Sue said...

These guys are crazy. What EVERYONE who reads this blog needs to do is write to all of the directors of the company - Brent can get you their email addresses - and tell them that:

a) if they have not fully vetted potential takeover offers that Peggy has dubbed "stink bids" for the company - they may be in violation of their fiduciary responsibilities to shareholders

b) there are persistant rumours that Century could raise financing if and only if Peggy is replaced as CEO, will not be a director, and will not be a consultant to the company - in which case, a failure to remove her now means that directors may be in violation of their fiduciary responsibilities to shareholders

c) these options to the directors are a form of self-dealing... why should they be given compensation? the stock has gone from $1.68 on May 12, 2006 to $0.14 desperately in need of financing. This board also approve a $200k secured loan to Peggy which she converted into 8 million plus shares of Century (over 4% of the company) - more reward for failure.

All reading this blog: don't burry your heads in the sand. You have to be active and make your voices heard or we will all get what we deserve. Please write and call the board. This is insanity. I think this asset would be viable under someone else's leadership who could get the financing and sponsorship we deserve.

Best of luck to us...

bigjohn37 said...

Good comments/advice, Peggy Sue. You are absolutely right about PK & Associates (e.g. BOD) not deserving any special compensation for their "work".
Thanks, BJ