Thursday, December 23, 2010

$4M PP is Closed

BLAINE, WASHINGTON--(Marketwire - Dec. 23, 2010) -



NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES


Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that it has closed its previously announced private placement of units of the Company ("Units"). The Company issued an aggregate of 10,324,600 Units at a price of C$0.39 per Unit for gross proceeds of C$4,026,594. 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 an exercise price of C$0.60 per share for a period of 18 months from the closing date. The placement was completed by a syndicate of agents led by Haywood Securities Inc. and including Byron Capital Markets and Union Securities Ltd. (collectively, the "Agents").


The Company paid a cash commission of 6.5% of the gross proceeds and issued compensation options to the Agents equal to 6.5% of the Units sold, entitling the Agents to purchase Units at an exercise price of C$0.39 per Unit for a period of 18 months from the closing date.


All securities issued in connection with the private placement are subject to a four-month plus one day hold period from the date of issuance.


The Company intends to use the net proceeds of the private placement to advance the Lamaque gold mine in Val d'Or, Quebec through the final commissioning stages of the operation.


This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.



About Century Mining Corporation



Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, the 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




Caution Concerning Forward-Looking Information





This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws including with respect to the intended use of proceeds raised in the private placement. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.




While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.





FOR FURTHER INFORMATION PLEASE CONTACT: Peter A. Ball
Century Mining Corporation
Vice President Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com

2 comments:

Sam Brennand said...

Delay makes sense now.

Guess Haywood was using the extra time to try and find more buyers to fill out the entire $5M proposed PP. Only getting $4M is kind of disapointing but at least it minimizes dilution.

Hopefully they don't need the extra million...

Now just for the update.

Carib said...

I'm neither surprised nor disappointed that the PP wasn't fully subscribed. 80% is actually pretty good, considering it was announced 3 days before disappointing Q3 results and just after a $1.5 million PP and a $2.5 million flow-through PP. This also confirms why it took so long to finally close the PP.

Based on my earlier experience with another stock, shareholders were advised by IR that they couldn't announce positive news between the time a PP was announced and the closing, so this may also explain why there hasn't been a corporate update yet. The closing of the PP had to come first or at the same time.

Unless they were really desperate for the $5 million, they should have waited until after the update, especially if the update confirms the last 2010 forecast. If the company is now producing 3,500 - 4,000 oz/month from Lamaque, then they should be cash-flow positive.