Century Mining Corporation (CMM: TSX-V) today announced that, subject to regulatory approval, it will complete a non-brokered private 
The Company will issue 20,000,000 units at an issue price of $0.20 per unit. The proceeds from this offering will be used for the underground drilling of the Lamaque project in Val-d'Or, Quebec. This financing comprises a portion of the $21,000,000 private placement described in the Company's November 2, 2009 press release.
The Company will pay Oberon Capital Corporation for introducing subscribers to the Company a finder's fee of cash equal to 4% of the aggregate gross proceeds, and broker warrants equal to 4% 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. All of the securities issued under this private placement will be subject to a four-month hold period.
Margaret Kent, President and CEO of Century commented, "This financing is part of the $21 million private placement, the balance of which we expect to close in early December."
6 comments:
Good stuff. It sounds like the deal is (not officially as yet, but) virtually closed, subject to regulatory approval.
As I posted this morning on the Stockhouse board, the $2.7M financing earlier in the month was likely with associates and affiliates of Finskiy and Scola (if we are to believe the article comment of them already owning 10% of Century).
Here is what is interesting. That $2.7M financing had the same finder as this $4.0M financing - Oberon Capital Corporation. As a result, it is possible that this $4.0M financing is also with associates and affiliates of Finskiy and Scola.
If such is the case, it would mean that Finskiy & Scola and associates and affiliates would already own 16.5% of Century's outstanding shares upon official closing of the $4.0M FT financing.
"The proceeds from this offering will be used for the underground drilling of the Lamaque project in Val-d'Or, Quebec."
We have over 2.6M (43-101) ounces within 1,000 ft (300 metres) of the surface in the Lamaque u/g. I am glad we are aggressively attempting to move some of those ounces into higher resource categories, especially P&P Reserve.
Perhaps this is why Peter's agent was told there were none available.
Hi Guys,
Yes, my agent at Canaccord told me Union was not going to have a selling group. But who is Oberon??? I wanted to contact them, as I feel 20 cents for flow through is cheap. And who here has heard of giving warrants with flow through. Very rare in my experience. If I could get, I’d take tonnes!! So, from my prospective, those who have held shares for a while, are in for a nice ride. It hasn't happened yet, but I believe we are going to see an avalanche of news, that will force the stock up. We will get the news of the Closed Financing, which means the company will get the 21 million, then we will get the news that the Bank in Germany will be closing their transaction, as I assume, even though it was not stated, that the gold deliver contract, was dependant on Kent raising the required funds, before the deal would close. And then we will start to get the news flow of development at Lemaque. All of these will bring serious attention to CMM, and the shares will reflect the attention, potential via increased volume and price. I don't like giving targets, but with all this good news, and the POG, I can't see how it could remain under 50 cents in the short term. All just my opinion, but I believe it will happen! Pete
You have to think who is buying this PP...seems like they are associates and friends of Finskiy so he is treating them very well. However, this confirms to me that we will see the financing go thru and the rest of the news as you say will propel us up. At 50 cents, you are talking $175M market cap...still very reasonable with our gold in the ground. Definetly not pie in the sky IMO.
I think clean up of the balance sheet with the financing will also unlock the 20,000 - 25,000 ounce per year low cost production value of San Juan.
Also, having infill drilling success with the more than 2.6M ounces positioned within 1,000 ft (300 metres) of the surface would do wonders. I'm really not sure how many people have thought about this, but that's sufficient gold (by itself) to maintain 15 (+) years of Lamaque u/g mine life at a rate of 150,000 ounces per year, all within 1,000 ft of the surface. Everything else is bonus, including the 3M other 43-101 ounces at Lamaque (below 1000 ft), the numerous new high grade (bulk mineable)zones discovered through Vulcan this year (1000 ft to 2600 ft), the high potential for 2M bulk mining ounces still to be added to 43-101 from the Lamaque Main Plug (where Teck Cominco sucessfully mined 3.6M ounces with most of those being relatively low cost bulk mined ounces) and the West Plug, the high potential (large) Val d'Or area properties outside of the complex (where some historical drilling has already identified the presence of gold), the 400 or so hectares of the Sigma 2 property in Louvicourt (with the already established Sigma II pit, with 155,000 ounces of past production @ 2.67 g/t and still open at depth).
It sounds like accessing some (not all) of the 1.7M ounces located in the Cross-Over section might have a challenge or two, but nothing major that would prevent the majority of ounces from eventually being mined. Also, I think a small portion of the Bedard Dyke ounces (lower down) may bleed under the town of Val d'Or. It can still be mined by Century though. I mentioned it because I found it to be fascinating. It's interesting how things are structured. It seems like the government/town has surface rights and mining companies have mining/underground rights. As such, I get the impression that the town can set up shop anywhere they want on the surface (even on your property) and the mining companies in the area can mine anywhere under the surface within their borders (it doesn't seem like this is only a Century thing, it seems to be with all mining companies in the area). I guess that might be how the town's Lamaque museum ended up on our property.
Anyway, I think the potential is all there for Century to be hugely successful.
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