BLAINE, WA, Nov. 23 /CNW/ - Century Mining Corporation (CMM: TSX-V) today announced that the Company received overwhelming support at a special meeting of shareholders who passed an ordinary resolution authorizing and approving a C$21 million private placement of units of the Company, the creation of new control persons of the Company and the consequent amendment of the Company's shareholder rights plan. Shareholders who voted in person or by proxy voted 99.23% in favour of the resolution.
Margaret Kent, Chair, President and CEO of Century, concluded the meeting by saying that the Company expected the financing to close in early December and that the Lamaque underground project would reopen in January of 2010. The first gold pour is expected in April of 2010. Notices have been sent to mine staff. Similar notices of recall will be sent to hourly-paid workers in mid-December.
4 comments:
Excellent. Hopefully, this hits the papers tomorrow, and we see a decent pop in the share price.
Pete
Good stuff! I think this part could be a strong signal that the deal is coming together well behind the scenes:
"Notices have been sent to mine staff. Similar notices of recall will be sent to hourly-paid workers in mid-December."
My guess is that they likely wouldn't have sent notices out of mine staff if there were any major (deal breaking) issues they were dealing with at this particular moment in time, with regards to the deal closing. Hopefully it continues to come together smoothly. Our timing is looking good also, with the gold price being US$1,165.
The Russians are freaks for gold right now, lead by the Russian Central Bank itself.
It would be nice also if they were able to release some drill results and some Vulcan Model results over the next few weeks.
I don't think we'll see much of a pop in the share price until the financing closes. The outcome of the vote was a foregone conclusion as who in their right mind would vote against this. The key here was not the vote, but that the deal was still on the table by the time of the special meeting. If Scola and Finskiy were going to bail, they would have done so by now. It doesn't hurt that the price of gold is over $1,160. At that price San Juan is worth more than the current market cap.
Until the financing closes I expect that there will be lots of shares for sale at 20 cents. I'd be happy to exchange my shares for a 20-cent Flow-through share (with a net after tax cost of probably somewhere in the 12 to 14 cent range) and a half-warrant. That's the reality and pain of including warrants with PP's. I would have prefered that Scola and Finskiy took the whole PP as these guys aren't interested in flipping for pennies.
What I'm most looking forward to now is the announcement of the new Directors and a new Chairman of the Board which removes the iron grip that PK has on the company. Maybe then the share price won't have such a severe management discount. I'd prefer any other good news to wait until that happens.
Emerging Market Central Banks Have Scope To Buy More Gold -BlueGold
Tue, Nov 24 2009, 02:51 GMT
SINGAPORE (Dow Jones)--Central banks of emerging markets have substantial scope to expand their gold reserves given their underweight position in the metal relative to developed market central banks, Stephen Jen, managing director of macroeconomics and forex at BlueGold Capital Management, said in a report dated Monday.
According to the report, the average gold holding ratio, or gold holdings as a percentage of total foreign exchange and gold reserves, of the U.S., Japan, ECB, UK, Germany, Italy, France and Switzerland is 37.9% on average.
This compares with an average of 2.2% for a group that includes China, Russia, India, Taiwan, South Korea, Hong Kong, Brazil and Singapore.
"The obvious implication is that the scope for emerging market central banks to buy more gold is substantial, if they decide to diversify into gold," said Jen.
Jen also said the top eight emerging market forex reserve holders have $4.1 trillion in foreign reserves, meaning every 1% reallocation in reserves towards gold would correspond to $41 billion in gold purchases.
"If these banks raise their gold holdings from the current 2.2% to a conservative 5%, this would correspond to $115 billion in gold purchases," he said.
The Reserve Bank of India's purchase of 200 metric tons of gold from the IMF, first reported Nov. 3, which cost it around $7 billion, has been one of the factors widely cited as driving gold to new record highs.
At 0230 GMT, spot gold was trading at $1,163.80/oz, down 30 cents from Monday's New York close. Spot gold hit a record of $1,173.75 Monday and has risen 33% since the start of 2009.
-By James Campbell, Dow Jones Newswires, +656415-4082; james.campbell@dowjones.com
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