Monday, November 8, 2010

Another pp...

Tuesday, November 09, 2010Press Release

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,

"Keith Hulley"

Interim CEO

10 comments:

Anonymous said...

There's another question for Peter...and I think it's pretty obvious that it'll come up..."when does the bleeding stop with these PP's?"...at what point is someone gonna take blame for another one priced at .39?

David said...

What's the significance of shares issued on a "flow-through" basis vs. normally?

Anonymous said...

What?!!!

WHY THE F*CK IS CMM DOING PP AT .39FREAKIN CENTS WITH GOLD PRICE OVER $1400??? (excuse my french)

Either they got the gold or they don't. If they do, then put up.

PP should have been at least $0.90 not 60% off.

Now we know why CMM has been in the gutter for 2 months while gold price breaking 25yr records. Bozos too busy giving the company away for peanuts.


Weary Canuck

moich said...

WOW,Thats why Peter let the cat out of the bag on the Bedard Dyke Via cell phone from Germany.Someone just hit the panic button.I'm still wondering what the 15th is all about?

Carib said...

Weary, I understand your frustration, but please save that language for Stockhouse, else posts with profanity will be deleted.

What I noticed about this PP announcement that was different from the previous two was this clause was missing "Century has been advised that Kirkland Intertrade Corp and Gravity Ltd. have consented to the Offering and will not exercise their pre-emptive rights in respect thereto as provided in the current Shareholders Agreement." Could that mean the placees are one or both of Scola and Finisky. Maybe for the $1.5 million, but the flow-through portion is really only of benefit to Canadians.

The selling today was reminiscent of the last time a PP was announced. BMO Nesbitt was dumping huge blocks at the bid, perhaps either to raise funds for the PP and/or to keep the closing price within the maximum discount allowed for a 39-cent PP price and 45-cent flowthrough price.

Whenever the price is declining on big volume, Jitney piles on and they were in second place today.

On a day when gold blasts through $1,400/oz, one can't really blame some other retailers from losing patience and switching horses.

If the PP was needed because if, as someone reported on another forum, Century has not yet reached cash-flow positive status, then it is a given they won't meet 2010 guidance of 45,000 to 50,000 ounces at a cash cost of $575 to $625. Frankly, expectations were set too high at the beginning of the year and the forecasts were inconsistent. The Lamaque video stated that the year-end goal was 1,200 tpd which still looks like it is achievable, but that wasn't nearly enough to meet the original nor revised 2010 forecasts.

The one question I'd like answered on the CC is "at $1,300 gold how many ounces per month does Century need to produce per month at Lamaque to be cash-flow positive?" Ounces are the only metric that matters because tpd without knowing the grade is kind of irrelevant.

At $1400 gold and with production of 25,000 ounces from San Juan next year at a cash cost of $600/ounce, we are now trading at 8 times 2011 cash flow from San Juan alone.

cynikal, you or any other poster can request membership by sending me an email at centurycarib@gmail.com. New posting rules won't go into effect before December 1, but after that you must be a member to post.

Carib said...
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Carib said...
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Anonymous said...

Here's a novel thought. Why don't those who have some spare investment cash buy into the Private Placement? The news release does say....'that it does intend to complete a private placement financing....." which tells me that it is not yet a fait de complete. A call to Peter Ball with a request to participate would be in order. These PP's occasionally have some room for additional capital.

Dennis, New Brunswick

psl said...

Large investments would have to be well below market value to reduce risk as they could just purchase on the open market instead of buying at a premium.

Anonymous said...

Hi Dennis,

I checked already late last night if there was room on the PP's...they are both filled already