I wonder who the new Chairman will be

1) Idea for the new Chairman and the new IR person:

“Upon closing, the Investor will be entitled to nominate three members to Century's Board, and an independent non-executive chairman will be named.”

Hopefully they appoint someone that is well respected in the investment community (and maybe with some connections), especially with institutions.

I would like to see the new Chairman (once appointed) and the new IR person (once hired) to set up meetings with various institutional investors / fund managers to present Finksiy’s and Scola’s vision for the new Century Mining. I would like one of the meetings to be with Sprott Asset Management (if Sprott is receptive to a meeting). It would be nice to get John Embry (of Sprott) on side again. I think he knows that Lamaque can be a good investment in a gold bull market, once cashed up and with leaders he is comfortable with (assuming he warms up to the new Chairman, as well as to Finskiy and Scola).


2) John Embry’s successful experience with Lamaque during last bull market:

As mentioned in a pervious post, John Embry made a lot of money with Lamaque during the last gold bull market frenzy (late 70s – early 80s). Sigma Mines (which mined the Sigma u/g back then – Sigma u/g is now part of the Lamaque Complex), went from $.30 per share to $3.00, then from $3.00 to $36.00, and then eventually peaked at $57.00 per share. I heard John Embry state that he was invested in Sigma Mines from $3.00 all the way up to $20.00.

We’re not going to see $57.00 per share this time around for Sigma Mines / Century Mining, but I’m sure even John Embry realizes that there is potential here for a significantly appreciated share price relative to today’s price, especially once the company is cashed up and with new figureheads (with deep pockets) in place.

By the way, I will post a link in the comment area of a report I read back in 2005, prepared by Doug Casey. On page 7 and 8 of that report it shows the share prices of key junior companies during the time periods of Dec. 1978 to late 1980, during the last gold bull market. For Sigma Mines, it only captures the $36.00 to $57.00 per share period. For Carolin Mines (as I previously posted about also), it showed the climb from $3.10 to $57.00. A few of the other companies/mines on the list will be recognizable, but many will not be also.


3) Growth Strategy idea for Finskiy and Scola:

Also, I wonder what strategy Finskiy and Scola will employ to grow the business, once we reach that stage. Finskiy is the CEO for Intergeo Managing Company, the mining and exploration arm of Onexim Group, which is Russia's largest investment fund with $25 billion in assets. As we know, Prokhorov (currently Russia’s wealthiest person) is the driving force behind Onexim. I believe Prokhorov and Finskiy are close business associates.

Once Century’s share price is high enough, and the time is right, I would like to see a growth strategy that includes a partnership with Intergeo/Onexim, where both companies can benefit. The strategy can focus around Century merging with distressed companies with good assets (in need of financing). As part of the merger, Century can set up non-recourse financing with Intergeo/Onexim to either roll over current debt obligations from the new company or provide project financing for mine development projects (from the new company). It is something that will be attractive to shareholders of any company in distress. Also, these are situations where we can utilize Peggy’s best skills (in complex deal making roles, especially ones involving managing or rolling over debt). Intergeo/Onexim will benefit also because (as a financing partner) we can provide them with a very good interest rate on their non-recourse financing. This should be attractive since global interest rates are expected to stay relatively low for a number of years into the future (the global rates might increase but we are not going to see sky high rates until the unemployment rates have decreased by quite a bit, which typically doesn’t happen overnight).

“Fran Scola is a partner at LFM Partners, a partnership with extensive investments in the natural resources sector.” I don’t know much about LFM Partners, but hopefully Century can create a financing partnership with them also.