Century Mining Announces C$5.25 Million Flow-Through Financing

BLAINE, WA, Oct. 14 /CNW/ - Century Mining Corporation (CMM: TSX-V) today announced that, subject to regulatory approval, it will complete a non-brokered private placement of C$5.25 million comprised of flow-through shares.

The Company will issue 26,250,000 common shares on a flow-through basis at an issue price of $0.20 per share.

The Company will pay Union Securities Ltd. for introducing subscribers to the Company a finder's fee of cash equal to 7% of the aggregate gross proceeds, and broker warrants equal to 7% of the aggregate number of flow-through shares. Each broker warrant shall be exercisable for 18 months from the date of issue and shall entitle the holder to purchase a common share of the Company for a price of $0.20. The flow-through share issuance is subject to approval by the TSX Venture Exchange. Closing of the private placement is expected to occur on or before October 23, 2009. All of the securities issued under these private placements will be subject to a four-month hold period.

The proceeds from this offering will be used for the underground diamond drill program at Lamaque, the ongoing Vulcan computer modeling project, and resource and mine planning. Drilling is currently underway at the Bedard dyke.

As a result of this private placement and the deletion of the Etruscan share acquisition from the financing term sheet described in the Century Mining press release issued September 15, 2009, the Company will be proceeding directly to the closing of the private placement to Kirkland Intertrade Corp. and Gravity Ltd. and the prepaid gold forward facility without completing the $4 million interim bridge loan referred to in the term sheet. For more information, refer to the Century Mining press releases issued July 30, 2009 and September 15, 2009.

Commenting on the private placement announced today, Margaret Kent, President & CEO of Century, said, "We are pleased to be able to simplify the large transaction and complete the flow-through private placement described above. This allows us to continue our exploration and mine development efforts in preparation for the start up of the Lamaque mining project, which will commence as soon as the larger financing is completed."