Tuesday, November 30, 2010
Since November 9 when the PP's were announced, Scotia was the biggest seller with more than 3 million shares sold. Today they sold 1,000 shares. TD sold more than 500k shares today.
In that same period, a couple of new players began to buy Century shares. Buying through Instinet consisted of over 600,000 shares and Byron bought 269,500 shares. The buying by Byron was encouraging because Byron Capital was named as one of the leading agents for the $5 million PP, yet a Byron client was buying on the open market.
There was a bit of selling by Wolverton (208k) which I suspect was Peggy and Ross Burns as they also purchased small amounts of Tamerlane stock. I suspect PK also exercised some warrants at the same time as Sheridan, but sold stock to pay for them.
I've also added a new poll to gauge how confident blog visitors are that Century will finally start meeting production forecasts.
Edit: I forgot to specify "at Lamaque" for the poll, so if you voted before, you lost that vote and can vote again.
BULLETIN TYPE: Private Placement-Non-Brokered
BULLETIN DATE: November 30, 2010
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation with respect toa Non-Brokered Private Placement announced November 9, 2010:
Number of Shares: 5,555,555 flow through shares
Purchase Price: $0.45 per share
Warrants: 2,777,778 share purchase warrants to purchase 2,777,778 shares
Warrant Exercise Price: $0.60 for an 18 month period
Number of Placees: 5 placees
Finder's Fee: Oberon Capital Corporation receives $175,000 and 277,778 non-transferable compensation warrants, each exercisable for one share at a price of $0.45 for an 18 month period.
Pursuant to Corporate Finance Policy 4.1, Section 1.11(d), the Company mustissue a news release announcing the closing of the private placement andsetting out the expiry dates of the hold period(s). The Company must alsoissue a news release if the private placement does not close promptly. Notethat in certain circumstances the Exchange may later extend the expiry dateof the warrants, if they are less than the maximum permitted term.)
Transaction/exercised date: Nov. 25`10
SEDAR Filed date: Nov. 29`10
Option expire date: Nov. 30`10
Of note, the exercise price was only about $.03 lower than the market price on the exercise date, yet he went ahead with exercising the options anyway. Additionally, throughout the years I have been an investor with Century Mining, I do not recall Mr. Sheridan purchasing any Century shares either via the exercise of options or via the open market. It`s not clear about the level of relevance of this transaction. Nonetheless, it is good to see Mr. Sheridan (a key Senior Officer and Director of the company) investing his own personal money in the company at this very important period / turning point in time.
Thursday, November 25, 2010
You know, I can see people being upset that we have not hit the original targets which is in all honesty quite fair in my opinion. From what I can see, many people that use the online investment community whether it be stockigloo, Stockhouse, or agoracom need to understand that they are dealing with venture capital here. When we seen the news about the results we were obviously a little upset but as venture capital we knew in advance that it could very well happen. Just by looking at the numbers that they had given us we could have made an estimate of the amounts of AU that would have been produced. I never post these figures in advance as it can sometimes cause people to change their own goals and as we have seen leads to people making predictions that are not always feasible under certain conditions. I just see so many people going into a panic over the recent stock decline. I have received several private msg’s from some people that use these sites stating that they were upset with the figures. Now this might seem like I am being a little harsh here but the reality behind venture capital is that if you can’t be willing to wait things like this out buy stocks like Johnson & Johnson or RBC...etc. These kinds of delays are to be expected folks. We knew the equipment was not in Quebec yet, we knew that numbers were low. Just with that info we should have known that we would not have hit our target. It’s like a tell people in practice, when you buy venture capital you have to be ready for three things: Loose it all, Make a lot, or play the waiting game. Whenever someone wants to buy a penny stock I make sure that the individual is comfortable with loosing the entire investment as it happens often in this game. Not saying it will happen here since we have all the funding we need and we have some very deep pockets backing us up but the risk is always there. At the end of the day if you are not happy with the risk around venture don’t buy into it. We have people that are consistently complaining about losing money and that things are moving to slow. If there are others in his shoes I would suggest you consider less volatile investments in the future as this type of capital is obviously not for you. When you buy an investment make sure it matches the risk levels in which you are willing to take. If you can’t sleep at night your obviously in an investment that has a beta that is way too high for your likings. As some of you here know I do have control over a significant number of shares and I have not sold any at this point in time. In the past few weeks I have actually upped the position in CMM by about 18% which is slightly significant. Over all the future looks bright for this junior mining Co and it is our largest play at this point in time. In the future assuming we can stay under.45 I will accumulate shares on a weekly basis here and there. For those who may be in at higher prices I say stay the course as the future looks very promising and for those who already have positions maybe buy a little more! With that being said I wish you all the best of luck on this stock. I have some projections on this stock that me and a finance group put together but I am still wearing as to whether I will make it public or not. In the mean time take care and best of luck to all investors.
Monday, November 22, 2010
Friday, November 19, 2010
One thing I would like to see from here on out that I will talk to Peter about is a positive press release every 2 weeks or so from the company outlining the progress that is being made since we have officially passed the turning point. I've mentioned this before as have others but I feel this is critical at this point more than ever. Obviously, we need to execute first and foremost, but once we execute, we need to communicate our success.
For example, they should continuously make a list of positive developments that will take place over the next few months and break them down into pieces. They should then think carefully about how best to market these developments and make each a separate press release. While it is convenient to combine developments in a single release that covers many items, it dilutes their impact.
Century has to realize their current investor base is extremely light on institutions and heavy in retail investors and retail investors want to feel in touch with what is going on with the company and get very skittish when they don't hear anything for a long period of time.
Here are some examples of what i would like to see from a promotions standpoint in regards to the tone and type of regular releases.
"Century Mining reaches new monthly production milestone"
"Century Mining is pleased to announce Lamaque Mine now cash flow positive"
"New drill results in Bedard Dyke outline additional high grade veins"
"Century Mining increases gold reserves by XXX % in new 43-101 report"
"Century Mining announces average gold grade at Lamaque has increased from XX to XX month over month"
These are just meant to be examples off the top of my head. I did not include the obvious CEO announcement and i'm sure they could come up with dozens more.
This way instead of stuffing some good news and bad news that offset each other in a dense quarterly report, the retail investors will get a sense of the improvement and positive growth that is taking place as we quintruple production. They will feel in-touch and proud that their investment and company is moving forward. When they simply had the Lamaque countdown to production, such a simple tool in itself generated a lot of excitement.
I have seen a lot of successful companies in this stage use this strategy as they climbed 5 to 10 fold.
I also see a lot of companies valued much higher than they would be without this type of regular communication. In a recent interview, Rob McEwan discussed the critical aspect of regular updates and communications to his investor base.
If you agree, please send Peter Ball (Director of Communications) a note. (Or even just forward him this if you don't feel like writing.)
If they hear the same thing over and over from many, it will be more effective than if they hear it from just a few. His email is - firstname.lastname@example.org
Tuesday, November 16, 2010
We enter into a joint partnership to develop the Copper-Gold-Silver porphyry system contained within the huge San Juan property (220 Km **2). The reality is though, on the current timeline, it will be many years before we have capitol to do anything with this portion of San Juan. Add to this, we need a different mining approach and ore structure analysis consistent with copper mining and those associated markets.
So, then the next logical question is; what mining company has the technology, is current in copper mining technology, is cash rich, and might be willing to partner with us? Also, I would like to add, has a very real frustration with Canadian Gov’t Regulations and hence a motivation to go to Peru. This company, if you have not guessed it by now, is Taseko Mines Limited. The Trading Symbol is TGB. To put this into perspective, TGB had a 3Q profit of 17.5 M$. They also have an enviable PE of 7. What is also of interest is, that, TGB has just been thrown to the preverbal wrestling mat by a Canadian Federal denial of their Prosperity project with 3.6 billion pounds of recoverable copper siting in the ground. Given that TGB has only two major projects this is very significant, as witnessed by TGB’s recent price slide when the news came out. These fine TGB people obviously need a Canadian Winter / Peruvian Vacation / CMM Joint Venture Property Examination Business Trip after this devastating hit. So, let’s help these fine Canadian entrepreneurs out.
To make this happen at the negotiating table, we just might want to bring in some heavy weights who have been there before. In this case, the place to send the headhunters to is Nova Gold. What they have done without mining a single production ounce of gold will someday be at minimum be recorded as…..Legendary.
Monday, November 15, 2010
Friday, November 12, 2010
NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that the Company has entered into an agreement with a syndicate of agents co-led by Haywood Securities Inc. and Byron Capital Markets, and including Union Securities Ltd. (collectively, the "Agents") pursuant to which the Agents have agreed to offer for sale, on a best efforts private placement basis, up to 12,820,513 units of the Company (the "Units") at a price per Unit of C$0.39 (the "Unit Price") for gross proceeds to the Company of up to C$5,000,000 (the "Offering"). Each Unit will consist of one common share in the capital of the Company (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share for a period of 18 months following the closing of the Offering at an exercise price of C$0.60 per Common Share.
The Company has granted the Agents an option, exercisable in whole or in part at any time up to the closing of the Offering, to offer for sale up to an additional 5,128,206 Units at the Unit Price for additional gross proceeds to the Company of up to C$2,000,000.
The Company intends to use the net proceeds of the Offering to advance the Lamaque gold mine in Val d'Or, Quebec through the final commissioning stages of the operation. The proceeds will assist in funding the underground development of the Lamaque Flats, the Bedard Dyke and the North Wall ore production zones. Currently the mine is producing at approximately 1,000 tonnes per day (TPD), and with the commencement of mining in the North Wall zone in Q1/2011, daily production is expected to increase to approximately 1,500 TPD and reach a final steady state production rate of 2,100 TPD by Q4/2011. The 2011 production guidance remains intact at 80,000 to 90,000 ounces gold, is forecasted to become cash flow positive in Q1/2011, and to reach commercial production in the first half of 2011.
The Company has agreed to pay the Agents a cash commission equal to 6.5% of the gross proceeds raised in connection with the Offering and to issue compensation options entitling the Agents to purchase such number of Units that is equal to 6.5% of the aggregate number of Units sold pursuant to the Offering, at an exercise price equal to the Unit Price, for a period of 18 months following the closing of the Offering.
The Offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.
The securities being offered hereby have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or province in which such offer, solicitation or sale would be unlawful.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer which holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Keith Hulley, Interim CEO
Wednesday, November 10, 2010
Century Mining Closes $1,500,000 Private Placement
BLAINE, WASHINGTON--(Marketwire - Nov. 10, 2010) -
"NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES"
Century Mining Corporation ("Century" or "the Company") (TSX VENTURE:CMM) is pleased to announce that it has closed the private placement announced November 9, 2010. The private placement consisted of 3,846,154 units (the "Units") of the Company, at a price of $0.39 per Unit, for gross proceeds of $1,500,000. Each Unit consisted of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable for one common share at $0.60 for 18 months from closing.
The Company has paid a finder's fee of $90,000, representing 6% of the gross proceeds of the private placement. All securities issued under this private placement will be subject to a four-month hold period.
The proceeds from this offering will be used for the continuing commissioning of the Lamaque Gold Mine operation in Val d'Or, Quebec, Canada.
BULLETIN TYPE: Private Placement-Non-Brokered
BULLETIN DATE: November 10, 2010
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation with respect toa Non-Brokered Private Placement announced November 8, 2010:
Number of Shares: 3,846,154 shares
Purchase Price: $0.39 per share
Warrants: 1,923,077 share purchase warrants to purchase 1,923,077 shares
Warrant Exercise Price: $0.60 for an eighteen-month period
Number of Placees: 1 placee
Finder's Fee: $90,000 cash payable to Carlton
Lead Incorporated (Irina Artemova)
Pursuant to Corporate Finance Policy 4.1, Section 1.11(d), the Company mustissue a news release announcing the closing of the private placement andsetting out the expiry dates of the hold period(s). The Company must alsoissue a news release if the private placement does not close promptly. Notethat in certain circumstances the Exchange may later extend the expiry dateof the warrants, if they are less than the maximum permitted term.
Tuesday, November 9, 2010
``......., while the proceeds of the private placement of Flow-Through Units will be used for eligible Canadian Exploration Expenditures ("CEE") including the diamond drill program at Lamaque.``
I don`t know what the CEE rules are exactly, but I have seen other companies treat CEE PP funding as restrictive cash, set aside for exploration work only. I believe for the PP investor to claim a CEE tax benefit, it requires the company to actually spend the money on exploration work. Again, I haven`t looked it up to see what the exact rules are, thus I am not 100% sure. Also, I do not know the documentation process that is followed, after the PP dollars are spent (i.e. if the company has to submit a document to show proof of exploration work performed before the PP investor is able to claim the CEE tax benefit).
It sounds like 63% of the $4M funding (at least initially) is targeted for CEE exploration work (a more aggressive exploration program as Lamaque).
Also, if they do a PP then it is done on the primary market and not the secondary. As we know the primary market is a sale of shares from the company to a stake holder. We would have a Cash Debit and a Credit in the equity section basically resulting in cash in the account. Had the investors done this on the secondary market, than the money would have simply transferred to another holder. In this case we needed cash and people were willing to give it at a discount to MV.
I know many have a negative feeling about these private placements/flow through but I think it is important to note that the people placing the money are people with some knowledge and that have a lot of money. If they are willing to dilute the stock and take a position then maybe there is more positive than negative to the picture. Much of the money from the Initial PP can only be accessed later due to some rules that were put in place.I would much rather see a PP than have a low cash balance.....risk management. I consider days like today excellent buying opp's for current holders and new holders for that matter.
With that being said I know people are pretty “stoked” to see what the company has to release on the 15th but I think it will simply be a time for the company to answer some question and to see some improved financial statements.Much of the money from the past was used to clear the balance sheet to make some of those ratios look a little better (it worked).The real figures that will send us rocketing in one direction or another are the Q1 results in 2011 when we are suppose to be Cash Flow Positive. If gold prices stay over $1300 (which I def think they will) we should be able to pull it off no problem from what I see from the current financials. I took the financials put some finance skills to work and it looks like if the production number are accurate we should be well on our way.Also, I highly doubt if there will be any announcement of the new CEO in the coming week.Many people do not understand but this is a long process.Just think, each person that is considered must meet board members for interviews which are literally spread across the map including Russia of course.I am not a fan of waiting on a new CEO but I would rather wait than to have a “half Decent” CEO at the helm.Once we find a CEO with a great track record I think he or she will be able to accelerate this company in the right direction.
At this point in the game all we can do is wait and see what happens.It may be frustrating for some to see share price go sideways but in trading school they always said “longer the consolidation the bigger the pop!” The longer we stay at these levels the more support we have as people that got in early sell and the new Purchase price for new investors becomes current MV.
I guess I kind of wrote a book and made many points (some of which that may not be clear to all) I think people need to sit back and relax ....we have a great investment here and from what I see we have little firm specific risk.I think the private placements that we have seen in the past prove this.We have Russian millionaires backing us up because they know where the price of gold is going and they want to try and coin it on this junior.
Once again Cheers and if there are any comment or concerns please post them.
Have a good one!
Thanks to those that contributed questions. I was not able to include all of the questions. Remember, the other questions (not on the list) can still be asked by individual callers during the conference call.
Here is the list of your questions submitted to Peter Ball via e-mail:
1) ``What are the current obstacles preventing CMM from getting long-hole mined production out of BD .. and North Slope. .. and when are these issues expected to be resolved.... and what tonnage is planned out of both BD and North Slope, both near-term and mid-term... at what ore grade (near-term, mid-term and long-term)?``
2) ``At $1,300 gold how many ounces per month does Century need to produce per month at Lamaque to be cash-flow positive? I would like to see monthly production info reported on a monthly basis.``
3) ``When does the bleeding stop with these PP's?"...at what point is someone gonna take blame for another one priced at .39?``
4) ``Why is gold breaking new highs every day while CMM can't break 50 cents? When will CMM follow price of gold and rise in the markets. The day before Peggy resigned, CMM closed at $.47 share price and the gold price closed at US$1,168 per ounce. Since then, the gold price has increased to US$1,420 (US$252 increase), yet we see a 2 cent decrease in CMM`s share price, to $.45. The majority of junior companies in the gold space have realized significant increases in share price during this same period, even companies at mine development stages. Could the company please explain reasons for CMM`s under performance in the market relative to other juniors during this period? What are the near-term and long-term expectations for CMM`s share price?``
5) ``Why has the company eliminated the monthly updates to the market? Why is it so terrible to brief shareholders on monthly production updates if there's nothing to hide? Why does management seem so disinterested in the performance of the share price?``
6) ``Has the company found the long awaited CEO? If not, what is the latest situation? When is the new CEO expected to be hired?``
Monday, November 8, 2010
Century Mining Announces $1,500,000 Private Placement and $2,500,000 Flow-Through Private Placement
Century Mining Corporation ("Century" or "the Company") (CMM: TSX-V) is pleased to announce that it intends to complete a private placement financing of 3,846,154 units (the "Units") of the Company, at a price of $0.39 per Unit, for gross proceeds of $1,500,000. Each Unit will consist of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable for one common share at $0.60 for 18 months from closing. The Company will pay a finder's fee of 6% of the gross proceeds of the private placement.
The Company also intends to complete a private placement financing of 5,555,556 flow-through units (the "Flow-Through Units") of the Company, at a price of $0.45 per Unit, for gross proceeds of $2,500,000. Each Flow-Through Unit will consist of one common share issued on a flow-through basis and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable for one common share at $0.60 for 18 months from closing. The Company will pay finder's fees of 7% of the gross proceeds of the Flow-Through Units in cash and warrants equal to 5% of the number of Flow-Through Units (the "Compensation Warrants"). Each Compensation Warrant will be exercisable for one common share at $0.45 for 18 months from closing.
The proceeds from the private placement offering will be used for the continuing commissioning of its Lamaque Gold Mine operation in Val d'Or, Québec, Canada, while the proceeds of the private placement of Flow-Through Units will be used for eligible Canadian Exploration Expenditures ("CEE") including the diamond drill program at Lamaque.
The completion of both the private placement and the private placement of Flow-Through Units is subject to regulatory approval by the TSX Venture Exchange and completion of documentation. All securities issued under both the private placement and the private placement of Flow-Through Units will be subject to a four-month hold period.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Thursday, November 4, 2010
This initiative was not my idea. It is something that Peter Ball requested. It is a proactive effort by the company to improve the information flow during the conference call. Although they encourage as much participation as possible on the conference call, they recognize that not everyone will be able to participate on the conference call. Let`s take advantage of this opportunity and come up with 4 good questions.