This appears to be a very creative transaction and potentially brilliant by both Finskiy and Century, if I have put the pieces together correctly. It looks like Finskiy and Century allowed the recent $4M FT transaction (closed yesterday) to be purchased by interested Canadian parties for $.20 per each share. Then Finskiy did prearranged private transactions with the Canadians to purchase the 20,000,000 shares for $.16 each. I don't see a customary 4 month hold period in Century's announcement (either Nov. 26 or Dec. 24) so it would allow it to be flipped immediately (if true).
The Canadians benefit because they get to take advantage of the Canadian tax benefits. Finskiy benefits because he gets a $.04 per share discount. Century benefits because it ensures we get $.20 per share via the FT (when the share price was trading at $.16 at the time and Finskiy, being Russian, likely has no use for Canadian tax benefits in 2009).
This now means that Finskiy already (officially) owns 17.2% of Century (42.3M shares), even before the final close out next week. If the market had any hesitations about Finskiy not being fully committed then this should erase that. There is no way he is not going to ensure Century gets fully financed (one way or another) when he already owns 17.2% of the company.
Yikes1, thanks for bringing this to my attention. Here is the full News Release by Finskiy:
December 24,2009
Acquisition of Securities of Century Mining Corporation
TORONTO, ONTARIO - (Marketwire - Dec. 24, 2009) - Maxim Finskiy ("Finskiy"), Voznesensky Pereulok 22, 125993 Moscow, Russia, announces that a company wholly-owned by him has acquired 20,000,000 units of securities (the "Units") of Century Mining Corporation, ("Century") at a price of $0.16 per Unit (the "Acquisition") pursuant to two private transactions. Each Unit is comprised of one common share of Century and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share at a price of $0.30 for a period of 18 months.
Prior to the Acquisition, Finskiy indirectly owned and/or controlled, together with joint actors, a total of 22,372,759 common shares of Century, representing approximately 9.9% of the then issued and outstanding common shares. Following the Acquisition, Finskiy indirectly owns and/or controls, together with joint actors, a total of 42,372,759 common shares of Century, representing approximately 17.2% of the issued and outstanding common shares and, assuming exercise of all of the Warrants indirectly acquired by Finskiy pursuant to the Acquisition, 52,372,759 common shares of Century, representing in aggregate approximately 20.5% of the issued and outstanding common shares, calculated on a partially diluted basis (not including the exercise of any other securities convertible into common shares held by any other holder).
As announced in a press release dated December 23, 2009, pursuant to a subscription agreement between a company wholly-owned by Finskiy and Century, Finskiy may indirectly acquire an additional 78,750,000 Units (the "Additional Units") at a price of $0.20 per Unit pursuant to a private placement (the "Private Placement"). Following Finskiy's indirect acquisition of the Additional Units, Finskiy will indirectly own and/or control, together with joint actors, a total of 121,122,759 common shares of Century, representing approximately 36.6% of the issued and outstanding common shares and, assuming exercise of all of the Warrants comprising part of the Units and Additional Units indirectly acquired by Finskiy, 170,497,759 common shares of Century, representing in aggregate approximately 44.8% of the issued and outstanding common shares, calculated on a partially diluted basis (not including the exercise of any other securities convertible into common shares held by any other person). The Private Placement is subject to a number of conditions precedent and there can be no assurance that the Private Placement will close on the terms described above or at all.
Finskiy acquired the Units for investment purposes. Finskiy and the joint actors may, in the future, increase or decrease their respective ownership of securities of Century, directly or indirectly, from time to time depending upon the business and prospects of Century and future market conditions.
An early warning report (the "EWR") will be filed on SEDAR and will be available for review at www.sedar.com under Century's profile. A copy of the EWR can be obtained from the contact below.
Andrey Shchetinin
1 comment:
Post a Comment