Someone other than Finisky has opted to take a $5 million stake in the company as there was only one placee. In one respect that is disappointing because we probably didn't buy any analyst coverage and it's just another snubbing of Canadian brokerages. The analysts that went to the Lamaque Tour were probably hoping to get in on a financing as that is how they operate. They don't recommend companies that didn't do any kind of financing with them.
OTOH, there should be no question about the closing of the PP or clients of a Canadian brokerage that might have gotten a piece of the PP selling their existing shares to raise funds for the PP. Here is the NR annoucing the filing. It is very unusual to get the filing announcement on the same day as the PP announcement.
Century Mining 12,820,513-unit private placement
Century Mining Corp (C:CMM)
Shares Issued 366,963,444
Last Close 9/15/2010 $0.415
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Sept. 15, 2010.
Shares:12,820,513
Price:39 cents
Warrants:6,410,257 share purchase warrants to purchase 6,410,257 shares
Exercise price:60 cents for an 18-month period
Hidden placees:one
Finder's fee:$250,000 cash payable to Liton Securities Ltd.Wednesday September 15 2010 - Private Placement
10 comments:
Carib, what makes you think that the one placee could not be a Canadian Brokerage? How could you say that so positively. Am I missing something
Keith, placee usually means person and in this case we have a single hidden placee. Financings done with a single Canadian brokerage are usually announced as bought deals and the name of the brokerage is advertised.
Also I don't think Century would be paying a finder's fee of $250,000 to an obscure agent called Liton Securities if the PP was with a Canadian brokerage. Try doing a Google search for Liton Securities.
Yeah, same day approval by the TSX-V is shocking to me. In the past, Century`s filings almost always drag on for weeks and even months.
I believe TSX-V does also have an expedited process which companies use from time to time, but I`m not sure if it is as quick as same day.
Century might have provided the TSX-V with actual documents a few days ago, hence the quick turnaround time by TSX-V.
Also, here is one note that stood out to me from Century`s NR today: ``is pleased to announce that it intends to complete a private placement financing of 12,820,513 units....`` When companies have to go back to the market for extra (excuse me/forgive me please type of) financing they normally use the word ``announces``. When they are happy with the situation then they use the word ``pleased``. Century is either happy with the shareholder they are bringing on or they are simply just happy with being able to raise cash for further development.
Liton Securities Ltd. received the finder`s fee. I haven`t been able to find their website. Maybe they`re a private securities firm or something.
Anyway, with the TSV-V filing approval, I wouldn`t be surprised if the PP gets closed off (and announced) tomorrow, Friday or early next week.
What do you suppose the odds are that this has something to do with an upcoming CEO announcement?
Maybe we've hired Goldzilla and this is part of the deal...
Carib, thanks for the info. It makes sense. Wasn't able to find Liton Securities by Googling. Very strange indeed.
Maybe my memory isn't all that on, but isn't Liton part of Fran Scola's holding? I seem to recall something about that when I was doing my bio research on the company. I remember being frustrated because I couldn't find anything out about it.
You have to hand it to Hurley,
At least with this timing & with the large volume traded the last while in & around .40c not many will be ready to cut & run on this news even though i'm sure they heard 'fully financed' numerous times while doing their DD.
Promising this & delivering that, lets hope this is a one off, for all our sakes.
This investor is getting a very sweet deal. Believe it or not, Century`s share price has only closed twice below $.40 since March 30th of this year. The only 2 times occurred 19 and 20 business days ago, when the share price hit $.39.
The investor is getting 12.5 million shares (and 6.3 million warrants) at the lowest closing price since March of this year.
Let`s hope that this investor can also contribute in other ways to help this company move forward.
With a boatload of cheap shares already in his/her pocket, I would like to see this investor step up to the plate and wipe out the Cannaccords of the world by buying significant Century shares on the open market.
ON A US SITE:
Century Mining to Raise $4.83M to Fund Quebec Gold Mining Operation
Posted September 15, 2010 5:21PM PST
Gold producer Century Mining Corp. is raising $4.83 million from a private placement of common stock and warrants to fund the continuation of its Lamaque gold mining operation in Val d'Or, Quebec.
The Blaine, Wash.-based company is issuing 12.8 million shares of common stock priced at 37.66 cents each, reflecting a 9.1% discount compared with the price where Century Mining shares closed yesterday. Investors will also receive1.5-year warrants to purchase 6.4 million shares for 57.93 cents each.
Century, which has prospects in Canada, the U.S. and Peru, said that shareholders Kirkland Interstate Corp. and Gravity Ltd. consented to the private placement and have agreed not to exercise their pre-emptive rights to participate.
Century is raising funds after seeing its working capital shrink to C$2.7 million (U.S. $2.02 million) at the end of June from C$18.4 million at the end of 2009. The company reported a loss of C$298,089 in the first half of this year, compared with a profit of C$2.58 million in the same period of 2009.
Canadian brokerage firms will only place a BUY recommendation on CMM when its finally reached90% of its value...then they will pump the hell out of it like they always do...pushing their overpriced stocks on the masses.
When they do start pumping CMM, then that's the signal to start unloading the shares accumulated at these ridiculous levels.
you never see them recommend anything at40c with 1000% upside.
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