BLAINE, WASHINGTON--(Marketwire - March 23, 2011) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that it has received an additional US$1,500,000 tranche of funding from White Tiger Gold Ltd. ("White Tiger") under the second of two bridge loans (the "Bridge Loans") provided by White Tiger to the Company as announced on March 14, 2011.
Century has now received, in aggregate, US$3,300,000 of the total US$4,000,000 commitment under the first and second Bridge Loans. The second Bridge Loan was agreed to concurrently with the execution of the Arrangement Agreement in respect of the proposed business combination of Century and White Tiger (the "Business Combination") as announced on March 14, 2011. The interest rate under the Bridge Loans is 10% per annum, and the Bridge Loans mature on the earlier of the effective date of the Business Combination and the termination of the Arrangement Agreement in accordance with its terms.
Mr. Daniel Major, President and CEO of Century stated, "The bridge loans from White Tiger have aided Century in meeting our financial obligations and helped continue funding the Lamaque production ramp-up, and will offset some of the losses from the crusher failure and permitting delays we have recently experienced."
About Century Mining Corporation
Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Daniel J. Major, President & CEO
109 comments:
Why are we still talking permitting delays losses?
of course they need more money... legal fees for the merger costs money...
Why is CMM paying INTEREST??!!
Is the merger happening or is this all just an elaborate scheme?
WTG down. CMM still down.
Someone stop the insanity!
Did we ever see/receive a manufacturers inspection report on that crusher?
A terrorist is one who uses my resources to destroy me or attempts to destroy me!
At last CC (crusher) major very very nervous. Bidden by masters to do illegal or near illegal acts? IMHO
We hold all the cards except those gained by THEM using unlawful entry into our company.
We are getting our asses kicked, hard. Never thought I would ever experience something like this in what I thought were regulated markets.
a question......if yesterday's filings were material changes, shouldn't the shareholders have been notified about them as they occured or is this more arrogance and management's part?
Talk about scams, both CMM and WTG are playing with fire. They truly think we're stupid shareholders.
I'm informing IIROC and the osc. Fuk it. I know people.
WTF wat happened to all the money we were given before, was it used to bribe all the BOD to be in favour of this deal and pay people that didnt want the deal to leave? These bastards better account fot the money that was already slated for ramp up. AND WHY THE HELL DID THIS BASTARD RUSKY NOT EXERCISE HIS WARRANTS BEFOREHAND. In no way should we be taking money from a company we are saying no to, this to me is a bribe loan to convince the market that CMM needs money and that WTG is our saviour.
Once again, this merger stinks more and more by the day.
--------
CMM is in the positive today so far...
WTG is in the negative today so far...
According to past trends, normally markets correct themselves, providing there is no price manipulation going on. So in reality, CMM should be climbing back up to
.76+ and WTG should drop down to
.28, its true valued price.
nt300
Bwwaaahahahahaha
WTG Price before merge PR: $4.50
WTG Price after: $3.50
= <85,000,000>
CMM Price before merge PR: 0.79
CMM Price after : 0.51
= <45,000,000>
TOTAL LOSS: <130,000,000>
Max Finisikiy thinks he's a brilliant businessman.
He's a fool losing money.
Hey everyone,
I wrote a letter to Mr. John Helmer. He wrote back:
"Would you like to draft a handful of questions which I may put directly to Mr Finsky, and let's see what he has to say in response.
I'm researching the issues you spell out..
Best,
John "
------
QUESTIONS FOR MR. FINISKY:
1.Why did he sell of his warrants instead of exercising them if CMM is hard up for cash
2. How does he justify White Tiger's $400M m/c when Century valued at less than $200M.
3. Why is he trying to seize control of 50+% of CMM assets?
Any one have any other questions?
What does Finskiy think about the ultra negative sounding NR regarding the broken crusher? The NRs keeps repeating that the broken crusher is a drain on cashflow BUT NEVER mentioned that the stockpiled ore can now be processed and that revenues are delayed but not lossed.
Payday, if you really think Finisky is a crook, what's the purpose of asking him any question?
Excellent job Payday!
Questions for Finisky:
1 -Was the timing and tone of the broken crusher NR designed with the intention of lowering CMMs share price in light of the pending takeover offer/share ratio calculation?
2 - What is your reaction to the market's negative reaction to the offer?
3 - Why is there not a cash component to the deal?
4 - Are you willing to disclose how WTG's value was arrived at?
5 - Are you willing to counter with a better offer?
6 - What is your reaction to the list of 78M dissenting shareholders?
7 - Do you think the CMM board has been completely transparent? Do you think they've acted ethically in not disclosing material operating matters in a timely manner?
"2. How does he justify White Tiger's $400M m/c when Century valued at less than $200M."
----
There is faulty logic here. Century shareholders will own 61% of the combined company, thus they are valuing CMM more than WTG. It's a question of 'relative' value and the mcap of the combined company will be what the market thinks it's worth... a 120k oz producer in 2011 growing to, I'd say, ~300k oz by 2014. (Current sp of WTG is irrelevant.)
John Helmer is the fellow with the blog:
http://johnhelmer.net/
What leads anyone to believe that Finskiy would be at all responsive to questions from Helmer, a guy who runs a blog detailing alleged corruption in the Russian mining sector?
You know the old saying Maria:
"Keep your friends close but your enemies closer"
120k oz producer in 2011 growing to, I'd say, ~300k oz by 2014.
---------
Where are you getting 300K oz from?
100 opy Lamaque
30 opy San Juan
20 opy Savkino Project
----------
150 opy + 150 opy from????
Pay Day
ask Max why he is going about this business aquisition in such an underhanded fashion?
"Thar's gold in dem der hills..."
Maybe they'll find a russian moose that sh*ts golden turds.
Don't you think they're going to ramp up Lamaque and get more NI 43-101 reserves out of the open pits?
Payday, these people aren't stupid. You'll not change them but they surely will try to influence your position.
If there's proof of laws being broken then we should pursuit from that angle...
Don't you think they're going to ramp up Lamaque and get more NI 43-101 reserves out of the open pits?
-------
Oh, I **KNOW** they will Peggy Sue... its WHITE TIGER's contribution I'm questioning.
HFG thinks the new company will be upto 300 opy by 2014...if Lamaque and San Juan are providing 270 opy (90% of the gold) does it make sense that CMM shareholders should be owning only 61%?
Maria, so far the popular media has been parrotting what the company wants them to say.
Is this deal really worth $740M? CMM is at 50c...so no its not.
Market is saying this deal is highly dilutive to CMM.
I don't expect articles from the press to change the minds of Finiskiy & Co. but it could inform (and sway) a few more shareholders on the fence.
they could also give the heads up to other junior mining company's that if they accept funding from Finsky and Co. be prepared within a year to lose your company and have Daniel major as your new CEO....just my two cents
"Market is saying this deal is highly dilutive to CMM."
That's debatable. The price of CMM now is right back to about what it was before the merger rumours started flying about.
One could make an honest case that the market is saying the merger is neither good nor bad, and is overall rather indifferent to it.
Peggy Sue:
How come I don't see your name on the Dissenting Shareholder list? I mean, the evidence is so overwhelming that this merger is Bad News, unless you don't mind not having voter’s rights with the proposed new company...
nt300, my view is that we're going to be better off with them than without them. What do you think the exit plan is for Max: (1) somehow syphoning out the money from a company of which he will own over 50%, or (2) successfully building a mid-tier gold producer and likely diluting his stake over time with additional acquisitions/organic growth as our market cap goes north of $1bn?
also, no one in the past 6 years has stepped up to put money into Century the way Max has, and I don't see anyone waiting in the wings... do you?
Payday
My question is - was the business combination proposal btw WTG/CMM negotiated at the time when the board of CMM was not lawfully constituted?
Peggy Sue,
I agree with you that Finskiy is likely to build a mid-tier gold miner with WTG... however, I think your views are overly simplistic. While Finskiy might not "siphon off" money, he could easily create negative catalysts to WTG's the share price and then do a complete buyout of the company on the cheap. That's a huge risk.
hedge fund guy.."...a 120k oz producer in 2011 growing to i'd say ~300k by 2014..."
In 2011, the optimistic production estimates are:-
Lamarque - 75,000 oz
San Juan - 25,000 oz
Savkino - 20,000 oz
----------------
total 120,000 oz
By 2014
Lamarque 110,000 oz (CMM web site shows forecast of 110,000 oz by 2013)
San Juan 30,000 oz (Cmm web site shows forecast of 30,000 oz by 2013)
Savkino 30,000 oz ( assume an increase of 50% in production)
-----------------
Total 170,000 oz (+/-)
find your ~300k too optimistic unless of course a new producer of 130,000 oz is acquired but this is another story I suppose. The other Russian mine that is suppose to be in production by 2014 is too hazy to be included in the current estimation
Nt, Peggy Sue has been drinking the White Tiger Kool Aid. No use trying to convince someone who thinks the sun shines out of Finiskys arse!
or (2) successfully building a mid-tier gold producer and likely diluting his stake over time with additional acquisitions/organic growth as our market cap goes north of $1bn?
------------
ROFL...Don't worry Peggy. Maxium won't be diluting his stake ever. All he has to do is set up another shell co. that he owns 95% to take over WTG .... Stay Tuned for: Red Kozack Gold 2013
Peggy Sue, Century on it's own has more potencial for deep pocket investors than if they merge with WTG. Sorry but I don't trust WTG at all. Who knows, maybe his plan is to take the company completely private which then we can all kiss our shares goodbye. I know, it happend to me and many shareholders, we lost everything.
Remember Alen Vangard? A private company bought them and us shareholders were the bottom of the pit, got nothing but lost 10's of thousands. We took this to court and lost.
Anyway, you sound like a very smart person, I just hope when the day comes you make the right choice and assist your fellow shareholders...
Did they not get a portable crusher while the main crusher was being repaired. I know that it didnt do the volume that the main crusher does but was this mentioned anywhere in the NR about the crusher being down and this caused us to lose money.. I didnt see it. This whole thing is unbelievable and this is happening here in canada.
Junior112 ... In the second sentence of the so-called gloomy NR they mentioned that they had put a temporary solution in place on February 17 to allow operations to continue. I assume that was the portable crusher. What else could it be?
"Century Mining Corporation (TSX-V: CMM) is currently commissioning the Lamaque gold mine in Val d'Or, Québec, Canada. On February 9, 2011, the mill facility experienced a failure of its cone crusher that placed the total crusher circuit inoperable until February 17, 2011, at which time the Company was able to implement a temporary solution and resume operation."
Yes I see that but like it says in the NR (On February 9, 2011, the mill facility experienced a failure of its cone crusher that placed the total crusher circuit inoperable until February 17, 2011) If they put in a tempory crusher wouldnt part of the crusher circuit be back up and running except for the main crusher itself. Why not just say that instead of putting in a tempory solution was made and make it more clear... They keeping talking about this 9 day shutdown when indeed they still ran at a lower rate. What a joke. Way to many questions.JMO
Agreed, it's writen in a way to confuse people when reading it. They worded it in a negative way as to make it sound worst than it really was. Everything about CMM's BOD does not sound good at all.
Check out
20:45 Feb 4 CMM Conference call where Daniel Major says COMMERCIAL PRODUCTION IN APRIL... that's just a couple weeks away folks!
Oh, and he passes on talking about the Financial aspects of the business, not once, not twice, but THRICE!
22:44 "Blah blah blah...BLACKOUT PERIOD...blah blah blah"
How f*ing convenient because Mr Major had just entered into a Letter of Intent with White Tiger for $300K just a week prior.
And Max Finisky had cashed out his warrants just 2 days prior, with Daniel Majors full knowledge that the purpose of doing so was to make a take over play of CMM.
Connect the dots. See the deception.
The price of CMM now is right back to about what it was before the merger rumours started flying about.
---------
Wrong!
Rumors started **Feb 22** when some people noticed White Tiger/CMM had special meetings scheduled on the same day.
CMM was trading comfortably in the mid-60's in the 3 weeks prior.
CMM down 30% from those levels.
PayDay ... not quite ... that is the day rumours started being posted to message boards. I think it is fair to assume that others with better connections inside the industry knew before then.
Yes and those people bought in cheap and sold on the rise for big profits.
PayDay, I applaud and thank-you for your efforts in educating posters on Stockhouse and Agoracom - you too nt300.
A relevant point of clarification on the warrants though. Finiskiy couldn't escape his legal obligation to provide up to $15 million in working capital by transferring his warrants to another party - though that it itself was probably illegal. He could provide the working capital either by exercising the warrants or by entering into a PP with Century if the warrants were out of the money.
The original clause about the warrant exercise acceleration based on a 60-cent share price was superseded by the Shareholders Agreement.
Really we should have insisted Finiskiy exercise his warrants before doing more 39-cent PP's with more warrants in the Sept - Dec period.
So Finiskiy couldn't say after February 2, "sorry, I don't have any more warrants to exercise". He had to cough up the balance of the $15 million which was more than $8 million if the BOD asked for the money. The problem was once Peggy was turfed, Finiskiy controlled the BOD.
I think the transfer of 25.5 million warrants with an additional 25 million shares plus Scola's similar transfer of shares had more to do with putting these shares into fake minority shareholders hands for the 50% count of minority shareholders. This will likely be the biggest block of YES votes IMO.
Carib, I think you are right. Finisky needs to pad the votes in order to ram this thing through.
Thanks for the clarification on the warrants issue. I thought the company could only force them once the shareprice hit 60c for more than 30 days...but since they could be enforced **anytime**....
well this just brings new meaning to the "turfing of Peggy Kent" fiasco last summer.
Knowing what we do about how Max Finisky operates, it is my opinion, he had NO INTENTION OF EVER honoring those $25,000,000 warrants. He only provided enough cash to get his foot into CMM and get on the BoD.
Step 2. Fire P.Kent (the one person who would force the warrant issue)
Step 3. Put in a shill and drag your feet with getting a replacement CEO
Step 4. Set up a White Paper Tiger
Step 5. Get your inside man Daniel Major the job of CEO (so much for "scouring the globe for international candidates"...I wonder how many interviewees said "No Thanks" when they discoverd the job was to be MFs "YES MAN"?
Step 6. Set up a Letter of Intent for Bridge Loan
Step 7. Sell rest of the warrants.
Step 8. Paper over CMM with WTG
I would sure be nice to how many people they actually interviewed for the CEO job and who they were? Could there be a way to find out?
Uall said:
"While Finskiy might not "siphon off" money, he could easily create negative catalysts to WTG's the share price and then do a complete buyout of the company on the cheap. That's a huge risk."
I think you hit the nail on the head as to what the major worry is.
What is the likelyhood of such a thing happening. Can this be pulled off ? Are there any legal protections against this kind of thing?
Technically the directors have an oblication to do what is in the best interest of the shareholders. Technically Finskiy does not have a say but we all know that the BOD are his puppets.
Question: Does it make any sense for Finskiy to try and take WTG private after the merger ?
What are the pro's and cons ?
In theory Finskiy could make a heck of alot more money owning 50% shares of a public company than reliance on profits from a private company could he not ?
Is it not the smartest and most money making move to try and get the P/E up to 20 times earnings ?
It would take 20 years of earnings to equal this payback from a private company.
PayDay, ask why WTG is not offering a definitive share price. This merger would go through if shareholders were guaranteed no less than 4.50 per WTG share and 1 WTG for .5 Century share. In addition, has anyone talked to Margaret Kent about this merger. After all her has a lot to loose on this deal.
why WTG is not offering a definitive share price?
------------
People need to ask themselves WHY this $5-800 Million company (yeah that paper tiger run upto $8/sh in less than a week)...why were they *only* able to secure a line of credit for a paltry $25M??
One would think that such a company would be able to secure at least $200-400M in a line of credit (since its worth so much "potential" and "opportunitiy")...???
well I'll tell ya, I think IFG-Bank looked at White Tiger and thought "what are those assets **really worth** if they fail to make their payments on time?"
.....hmmmm..... well they have $20M in cash...and a small open pit with N43-101 estimated free cash flow of $10M....so that equals $30M...we give them $25M and we're covered."
If we don't get a NO vote many people are going to lose a lot.
That said, who knows maybe CMM will recover back to a comfortable price above the $0.70c mark.
"Payday People need to ask themselves WHY this $5-800 Million company (yeah that paper tiger run upto $8/sh in less than a week)...why were they *only* able to secure a line of credit for a paltry $25M??"
CMM is worth 300 M why can't they get a line of credit?
If Gold jumped to $1600/oz, that might save CMM. They would be making enough money and wouldn't need the loans then.
CMM is worth 300 M why can't they get a line of credit?
-----
Well in 2009 CMM had just finished the 60M placement and were "fully financed".
After Peggy Kent left...who knows? I doubt Mr Finkski applied for a line of credit. Why get a line of credit when you can provide the loan yourself and collect the interest 10%!!!
PayDay, respectfully... what's all this romanticising about Peggy's tenure? She was unfundable and hence drove the stock down to a penny - under her watch - before Max put money in!
Also, 10% interest for a Century Mining is absolutely best commercial terms... look at the history. All of the good stuff is still yet to come.
GO, you are indeed right to point out Century's inability to get a line of credit despite its 300m mcap.
We will all make more with this deal than without. For those who disagree and will vote NO: you need to be sure that Century is CURRENTLY cash flow positive -> need to back this assertion up. Otherwise we will be in a very precarious position. IMHO
Uall said:
"While Finskiy might not "siphon off" money, he could easily create negative catalysts to WTG's the share price and then do a complete buyout of the company on the cheap. That's a huge risk."
I think you hit the nail on the head as to what the major worry is.
What is the likelyhood of such a thing happening. Can this be pulled off ? Are there any legal protections against this kind of thing?
Technically the directors have an oblication to do what is in the best interest of the shareholders. Technically Finskiy does not have a say but we all know that the BOD are his puppets.
Question: Does it make any sense for Finskiy to try and take WTG private after the merger ?
What are the pro's and cons ?
In theory Finskiy could make a heck of alot more money owning 50% shares of a public company than reliance on profits from a private company could he not ?
Is it not the smartest and most money making move to try and get the P/E up to 20 times earnings ?
It would take 10 years of earnings to realize a similar return from a private company and much more risk.
But.. there are benefits to taking a co private as well.
I am in uncharted water here ..
Go,
If Finskiy tries to drive down the share price and buy it out cheap, shareholders have the dissent remedy protection. In such a case, Finskiy would have to prove why the shares are only worth so little. In order to do that, Finskiy would have to make it look like the company is in a dire financial situation (i.e. mad amounts of debt).
In general, it takes a lot of time to blow enough money to get into a debt problem (i.e. they'd have to leave the crusher broken for 4 months). Time is obviously money... if Finskiy is bullish on gold, he wouldn't waste his time doing this because if gold shoots up to $2000/oz, he would have lost many other opportunities to buy gold assets.
Volume dried up. No more sellers.
I predict we stay at 50c until the information circular comes out, at which point we move up or down depending on what's in it.
Tell me hedge fund guy:
After the dreadful merger of CMM & WTG scenario:
1) How would you feel not having your vote mean anything anymore?
2) Do you find it fair that somebody in the new WTG will have more than 50+% of the voting which makes our vote valueless?
3) Will this ever attract deep pocket investment opportunities, knowing they will never have a say by way of voting?
4) What’s to say they won’t drive the price down in pennies then take the company private?
Not trying to criticize, just trying to get into your head to understand your position in this matter, because your opinion(s) are welcomed, and we all respect your posts and your presents on this wonderful and very informative blog...
I believe I speak for everybody and every shareholder of Century, we would all love to have a solid Board of Directors, that will do anything to ramp up production, make a profit, take care of its shareholders as to attract more investment to benefit the company and so we can all grow with Century and be rewarded for being loyal etc... I have no problem with another company wanting to merge with Century; it would be an opportunity for both companies. But for many reasons posted within this blog and in other sites, WTG & CMM together smells real bad...
Uall, isn't that what they are doing now?
I'd really like to see the books. I don't understand how CMM can be losing money with $1400 gold and 13M$ worth of PP done in Dec., -- especially since we already know San Juan is cash flow + and Lamaque has been averaging 1200 tpd.
--------------
Thanks for everyones questions. John is working on the story now!
PayDay
What they're doing right now... is a $3-4 million dollar problem. We are a $200+ million market cap company. For them to argue that a $3-4 million problem could getting us into a dire financial situation is laughable.
Uall I agree it's ridiculous but when I look at the share price I'm not laughing.
I'm not laughing either, though I would be if we were above our 52-week high. Which we should have been rightfully before that merger announcement. Oh fiddlesticks...
I just finished listening the Conference Call. This merger would have been good for CMM due to having almost limitless funding and would help ramp up both CMM mines to 100% full production.
Dam, WTG the 0.4 WTG share for every 1 CMM share is just not fair at all. It’s stupid that they did not offer a fair market value for the new shares. Anyway there’s a dump load of inconsistencies with that conference call and therefore the vote stands at a firm NO...
What WTG wants is the Lamaque property period. If ever Lamaque ramped up production, you wouldn't be able to catch CMM's stock price, because Lamaque has so much potential. Has anybody done some past research on Lamaque? It has a lot more potential than people believe.
Nt300, check out the video on Lamaque on CMM website.. Under audio/video. Then you'll see what Daniel Major was referring to about the gold being stacked up like pancakes.
Holly Shit lol, no wonder WTG wants CMM. I've seen pictures of Lamaque but that video is awesome, it shows a lot more. Lamaque has a lot of hope just as I said in my previous post... Good find Payday...
Referencing nt300; RE: a post-merger WTG.
"4) What’s to say they won’t drive the price down in pennies then take the company private?"
nt300, precisely.
The thought seriously scares me very much.
Is there ANYTHING happening that says this is not to be feared?
If it quacks and walks like a duck, well, it is a duck.
Look at history and the feeling in Britain in the late 1930's regarding Nazi Germany, how the British PM tried to cope with Hitler rather than face reality and prepare to oppose him.
Once you give up (sell) your CMM ownership you have no second chances. RS
Very valid point RS.
It’s that unsertancy that has convinced many people to completely sell all there CMM shares. I mean what’s to say if this merger was to take place, what will happen with the new WTG share price? Would they be a possibility of a massive selloff, driving the price the price down into the dirt, hell even perhaps bellow CMM’s current share price of today? If that would ever happen, it would be completely unfair.
That same question was directed to the CEO of CMM in the latest conference call and he skidded away from the question like a lame duck...
I wonder how would Peggy Sue feel if everybody sold off the new WTG and the stock plummeted down well below $0.50 per share, then what Peggy? Reason why we are voting NO is because we don’t want WTG paper, so I can see this happening especially if the price stays well above $3.00 after the proposed merger.
There’s a huge possibility of this happening because most shareholders don’t want nothing to do with WTG despite the fact both companies are trying to ram in down our throats by way of misinformation, unnecessary negative NR’s and massive price manipulation. Just be very cautious when investigating these claims, the facts are so staggering, you’ll get bitch slapped upside your head with them.
Stupid BOD’s, they should have used their heads, they should have provided us with a fair attractive offer, because according my assessment, that alone would greatly benefit the new stock price and give it a solid kick in the rear forward.
Sorry for the rant, I’ve stated something that’s been already said B4...
NONE
With the stock price so low, does anybody think this improves the odds of this merger getting veto by shareholders?
Or will the company spin it like "we need White Tiger to get the shareprice back up"?
100 WTG shares traded today!
Wow! We're gonna be gazillionaires!
How can anyone take this joke of a company seriously?
What's going to happen when all of the CMM shareholders start stampedeing for the exits?
Maybe a bizzaro version of the January NR from White Tiger Gold...."Dear TSX: Nothing material is going on. We can't explain why the stock is at 1 cent..."
It's nice to see CMM close at $0.51 with a positive. Hopefully the trend will continue upwards.
Someone sold 100 shares of WTG driving the price down by almost 9%. Wow sounds like something I want to be involved in.
Vote No. This is a bad joke.
I am curious, I wonder if the markets will properly correct both CMM & WTG stock prices as we get closer to the voting day of this merger. I can only see CMM going up and WTG going down. It’s pretty evident many of us know WTG needs CMM a lot more than CMM needing WTG. Hopefully the market will finally speak out, and perhaps we should be getting 2 WTG’s for every 1 CMM share...
But really who on earth is buying WTG stock? The company lacks substance, so who are these people?
I think Max Finikski just props up the price whenever they need to. As for the seller... 100 x $3.24 = $324. Maybe someone had to get some gas money for the weekend?
Lmho!
"With the stock price so low, does anybody think this improves the odds of this merger getting veto by shareholders?"
CMM and the dissenters both can spin it any way they like.
Sure, with the price low retail investors are upset and it improves the odds of this merger getting vetoed by shareholders.
Sure, with the price low retail investors are giving up hope and selling to WTG supporters thus improving the odds of the merger being passed.
Take your pick. Time will tell which is correct.
Sure, with the price low retail investors are giving up hope and selling to WTG supporters thus improving the odds of the merger being passed.
----
433,070 shares traded today. Thats less than 0.001% of the float
With only 10 trading days left until April 7, I doubt the yes side will be able to accumulate much.
nt300,
Thank you for writing that you appreciate my posts even if we have differing views. I appreciate that. Now to your points and to my take on the situation:
"1) How would you feel not having your vote mean anything anymore?
2) Do you find it fair that somebody in the new WTG will have more than 50+% of the voting which makes our vote valueless?"
I think that Max currently owns about 40% of Century. I think that he or some funds/friends close to him, could easily have bought or choose to buy an additional 11% via, say, a large private placement. I think the only way he gets out of his 40ish% of Century, 76% of WTG (hey, don't funds friendly to Max own the balance of WTG?) - or if you prefer, his over 50% of the combined entity - is by getting WTG NEW mcap over $1bn, i.e., by building something real.
I think Lamaque will be shown to be way off track currently. I don't believe they are doing 1,200 tons/day and/or that the grade is over 4oz/tonne and/or that the cash cost is close to $500/oz. These are assumptions being made by posters here which I believe are false. We need a company update on these issues, but being off-track from earlier expectations would explain why Century keeps raising small sums in PPs and is borrowing $4m from WTG.
If the name of the game were to drive it down to pennies and then scoop up more - well, that is EXACTLY what I believe could be done if this deal is voted DOWN! How easy would that be? Century in debt to WTG and not CF positive voting down a merger.
I also believe there is another shoe to drop on the quality of the Russian assets. They need to do a new NI 43-101 and update their reserves, but that will take some time ~1 year.
So your real question is am I comfortable hitching a ride with the Many who built Polyus and was COO of Norilsk... why, yes... I think it's our best/most realistic shot.
Time will tell whether I'm right.
Nice analysis December3...er..I mean Hedge Fund Guy...
Your assertions are that Lamaque is in the red and even though they were mining 400 tpd in October, 700 tpd in Dec, 950 tpd in January, 1163 tpd in February...there's **no way** they are going to come close to 1200 tpd in March!
Poor Century needs a saviour in the form of White Tiger (who only have $16M in cash now because $4M got lent out to CMM to use for Lamaque).
So $13M raised in the PP in December 2010 must have got burned through already...and here they are begging at the trough again for another $4M. Shouldn't be long until CMM burns through the remaining $16M from WTG too.
Then we'll be stuck with borrowing against the line of credit, but unable to make any monthly payments since Lamaque sucks so bad. (does that about cover it?)
You still haven't explained how White Tiger is going to get to $1B market cap...or how a single 20opy mine in Salvinko, with N43-101 projected cash flow of $10Mjustifies its $500M market cap ...WOW! Are you as amazed as I am? LMAO!
"So your real question is am I comfortable hitching a ride with the Many who built Polyus and was COO of Norilsk... why, yes... I think it's our best/most realistic shot."
Hedge fund guy, are you then discounting most (or all?) of what John Helmer also says?
hedge fund guyz:
Thanks for your reply, Interesting take on the matter even though I don't fully agree with all you've said.
To the point, still I believe there's too many discrepancies with this merger IMHO that need resolution. Century was portrayed as needing major financial help days before the merger...and yet days before that bad negative NR, they were doing fine with a strong share price on the rise...WHY...You know the rest....The conference call was also far from being convincing especially from CEO's and there respected position.
I am sure we both agree that WTG should have been a lot more prepared before announcing merger talks with CMM. They are at fault for current CMM shareholders not trusting them fully. Information about WTG should have been as if it was handed down on a silver platter.
What did they think? We wouldn't do research on them? If you ask me, WTG was not fully prepared and so the scepticism grows by the day just as the NO voting grows.
Careful there Payday about the December3 slip. You're likely to set him off again and demand an apology, LOL!
Besides the hedge fund guy's style in eerily similar to Peggy Sue's. Both are on a first name basis with Finskiy. After Peggy Sue asked me how she could convince me that she was who she says she is and I said to email me, she disappered for a couple of days and hedge fund guy showed up. I notice that he also took out a Stockhouse membership on March 22.
It's a lonely struggle when you are one against 100's.
BTW hedge fund guy, "Max" doesn't own 40% of CMM shares or 51% with his hedge fund buddies. Max owns 27.5% of the outstanding shares and on a fully diluted basis he owns only owns 24%.
Anyway, No votes, not to worry. If we can't guarantee 50% of the minority vote, we only all need to register as Dissenting Shareholders. White Tiger doesn't have the money to pay us out and the merger fails. That's why there is a 5% limit on the number of Dissenting voters.
Hi Ron S
What did John Helmer said.Is there anything in particular? Interested to know. Pl prove links to his messages/articles if U may
CMM History Lesson: Why Bridge Loans were Unnecessary
Everyone needs to listen to this:
http://www.youtube.com/watch?v=qQ6-LGopJxE
nt300.."I am sure we both agree that WTG should have been a lot more prepared before announcing merger talks with CMM..........WTG was not fully prepared and so the scepticism grows by the day just as the NO voting grows"
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In admitting only things, events, presumptions n ideas that are sufficient to explain the issue, I look at the matter this way:-
1)CMM is a rare piece of extremely valuable asset per ounces of gold in the ground (6 million oz current potentially going to touch +/-8 million oz in the promised(but long delayed) upcoming NI43-101 update and a huge propability of closing to +/-10 million oz when all the Lamaque targets are fully assessed/explored)
2)CMM has been progressing well but the sequence of events lately leads me to believe CMM is made to look like it is in dire strait by ways of:-
-Fin's warrant issue
-An over-blown negative NR which did not describe the actual situation fairly n professionally
-Getting rid of opposing top management personnel
-Ensure it is a rubber-stamp board
-Possibly other things we do not know yet
3)As things are difficult to be suppressed much longer, quickly geared up a shell co and launched a merger game. They would have been more prepared , nt300 but I believe they were caught by surprise and time is not on their side. Now, as you had said scepticism grows by the day just as the NO volting grows. This is because their game plan was clumsily built, lack substance, doubt inducing instead of confidence building (they do not even have a web site to date!!!) and full of holes that become so obvious that full understanding will come to one even if one uses his/her kneecap to ponder.
4)And why the hurry? My suspicion is they want it badly and need be in time for the Polyus's London IPO this coming Summer. If I am right and with Fin holding +50% by a victory of the Yes vote, what is there to stop him engage in some corporate exchanges again and sell off the combined entity to Polyus for dirt?
The argument that Fin will lose much too and will be stupid to do this does not exist because all this while, the money is not his but Polyus's. On the contrary, if he pulls it off, he will gain hugely within the Polyus's mother.
So you see, in the right hands, CMM is a goose that lays gold ingots for all share holders big or small. In the wrong hands, it is still a goose that lay gold ingots but those ingots are not for you shareholders particularly all of you suffering retail shareholders.
I am biased. Show me some convincing proofs and I may even change my mind.
Well said Wingfong...You hit the nail on the head IMO...
Winfong, I couldn't agree with you more. Remember the name of the game is to discredit CMM and make it look like they are on life support. I am going to assume that the north wall was stopped because, judging by the results from Integra's hole near the property line, they hit the high grade ore and you can't have a death bed company hit and mine high grade ore that brings revenue in or how would you justify getting loans, not they are justified anyway. Since Mr. Major has proved himself to be a liar I don't believe his remarks about 1200 tons a day, also I am not sure, but if the Bedard Dyke was being stope mined, shouldn't the ore grades be higher then they are? So lets say they are purposely staying away from the high grades so that it seems that CMM is dying quickly. I agree with Wingfong as time was not on thier side since progress was being made quite rapidly the theft/scam had to be executed quickly and they have made some slip ups in that execution and the truth slowly emerges. I am going to assume that the Q1 will look like a company going backwards not forwards.I think a poster on another site mentioned something along the same lines as the above too. These are just my thoughts. How does a tar and feather party sound with the three amigos, finsky, scola and major, as guests of honor?
There were over 5 million in capital expenditures in Q3. If you factor in 3 M for Q4 .. and 1.5 M for Q1-2011. You can quickly see how CMM could be in the hole.
Q4 = 9M (O and A)+ 3M Capital Ex = 12 M
6050 oz produced - 2000 to DB = 4050 oz x 1350/oz = 5.5 M (a 7.5 M loss) .. Even with S.Juan income of 1M/month it is still a 4.5 M loss.
1200 tonnes/day @ 3g/tonne solves these problems and CMM should be there now.
I think there is merit to the argument that Finskiy and Friends could have accumulated 50% without the merger.
I dont believe that going forward Cash will be an insurmountable problem going forward. There are plenty of companies in much worse shape.
The merger does cause a significant dilution .. effecting upside potential.. and I believe much of this potential would be realized the second Lamaque is Cash flow positive w/o merger.
I think one should heed Helmer, but keep in mind that doing business in Russia is far different than here in Canada.
one more thing, why was it nessesary to move the office to the British Virgin Islands away from regulators in Canada?
GO, your assumptions are not unreasonable, but are you forgetting the fact that $18.8 million in funds were raised between Sept. 16 and Dec. 23? Where is the difference between your $4.5 million loss and the $18.8 million? Even if your numbers are too conservative and the loss was $9 million, where is the other almost $10 million. Why did we need a measly $200k bridge loan on Jan. 24?
If Finskiy wanted to accumulate more shares, he would have been much better of to do so by participating in one or all of the PP's because the shares are below market price and he gets warrants. Why would he choose to pay full market price instead?
I find it humerous that some blogers can come up with reasons that dilution to the tune of .4 is good for us CMM shareholder. At this point i feel like i am getting offered .4 x .28 = .112 per share. So all these arguments about the share price is going to tank if we don't take this offer is crazy becuase the way i look at it for me to lose more than right now with this offer the share price would have to go below .112 cents. So all the threats of the share price tanking if we don't accept is so silly it makes me laugh, if tghis moves down at some point the buyers will show up and it will be before .112 cents.
Does any one here have any idea as to the value of gold in the ground ie. Proven, Probable, Measured, Indicated & Inferred?
I'm trying to get a sense of the value of CMM, based solely on the value of our gold at Lamaque and San Juan and maybe through in another say $50,000,000 for our Mill and mining equipment.
The reason I'm looking for this info, is that in the likely event that we may have to take this to the next level ie. determining a fair value of our CMM shares, a judge/court of law may determine the value of a company based on four methods as per info below.
IN THE SUPREME COURT OF BRITISH COLUMBIA
Citation:
Ashton Mining of Canada Inc. v. James Kwantes,
2007 BCSC 1374
WHAT IS FAIR VALUE?
[18] The appraisal of the “fair value” of shares under s. 190 does not depend in any sense upon the onus of proof. While each party should adduce evidence sufficient to substantiate its position, the ultimate onus is on the court to arrive at a fair value based upon an assessment of the evidence presented. At the end of the day, it is a question of the exercise of judgment by the court: Smeenk v. Dexleigh Corp. reflex, (1993), 15 O.R. (3d) 608 (C.A.) at 612; and Cyprus Anvil Mining Corp. v. Dickson 1986 CanLII 811 (BC C.A.), (1986), 8 B.C.L.R. (2d) 145 (C.A.).
[19] There are four widely accepted approaches to valuation of corporate shares: (a) the market value approach; (b) the asset value approach; (c) the earnings approach; or (d) some combination of the above. Brant Investments Ltd. v. KeepRite Inc. 1991 CanLII 2705 (ON C.A.), (1991), 3 O.R. (3d) 289 (C.A.) at 330.
As you can see, the value of CMM shares will be based on a combination of approaches due to it having income, gold assets in the ground and very large tracts of exploration properties with enormous potential.
WTG's value will be based on very small, unverifiable and unquantifiable exploration properties plus a small income from a mine in Russia, a market valuation approach cannot be used due to the very small volume of daily trades and thus open to manipulation.
The argument that Mr. Finskiy brings huge potential to the new CMM is not quantifiable and thus cannot be used as a value enhancer, that leaves WTG present share value very suspect.
Please respond with any useful information you may have.
NSX001
Does any one here have any idea as to the value of gold in the ground ie. Proven, Probable, Measured, Indicated & Inferred?
I'm trying to get a sense of the value of CMM, based solely on the value of our gold at Lamaque and San Juan and maybe through in another say $50,000,000 for our Mill and mining equipment.
The reason I'm looking for this info, is that in the likely event that we may have to take this to the next level ie. determining a fair value of our CMM shares, a judge/court of law may determine the value of a company based on four methods as per info below.
IN THE SUPREME COURT OF BRITISH COLUMBIA
Citation:
Ashton Mining of Canada Inc. v. James Kwantes,
2007 BCSC 1374
WHAT IS FAIR VALUE?
[18] The appraisal of the “fair value” of shares under s. 190 does not depend in any sense upon the onus of proof. While each party should adduce evidence sufficient to substantiate its position, the ultimate onus is on the court to arrive at a fair value based upon an assessment of the evidence presented. At the end of the day, it is a question of the exercise of judgment by the court: Smeenk v. Dexleigh Corp. reflex, (1993), 15 O.R. (3d) 608 (C.A.) at 612; and Cyprus Anvil Mining Corp. v. Dickson 1986 CanLII 811 (BC C.A.), (1986), 8 B.C.L.R. (2d) 145 (C.A.).
[19] There are four widely accepted approaches to valuation of corporate shares: (a) the market value approach; (b) the asset value approach; (c) the earnings approach; or (d) some combination of the above. Brant Investments Ltd. v. KeepRite Inc. 1991 CanLII 2705 (ON C.A.), (1991), 3 O.R. (3d) 289 (C.A.) at 330.
As you can see, the value of CMM shares will be based on a combination of approaches due to it having income, gold assets in the ground and very large tracts of exploration properties with enormous potential.
WTG's value will be based on very small, unverifiable and unquantifiable exploration properties plus a small income from a mine in Russia, a market valuation approach cannot be used due to the very small volume of daily trades and thus open to manipulation.
The argument that Mr. Finskiy brings huge potential to the new CMM is not quantifiable and thus cannot be used as a value enhancer, that leaves WTG present share value very suspect.
Please respond with any useful information you may have.
NSX001
I got (5, 1.2, 1.5,2.5, and 4) for a total of 14.2 M since September.
6.2 of this was closed prior to the End of Sept .. and as of Sept 30 they had 1.6 M in cash remaining.
This leaves 1.6 M + 8 M = 9.6 M for Q4. Assuming a 7.5 M loss and if revenue from S. Juan was used for ramping up their production.
This leaves year end cash at 2.1 M
Jan was a bad month and Feb was worse.
But.. I get your point. This amount of spending is over the top, reckless even. I get that they may have want to ramp both operations quickly, and this costs money,but not at the expense of running out of cash.
Even so, the cash position at present may be tense for a month or two so but there should be few extra capital outlays that are required or that can not be curtailed.
If they spend all that money .. it must have spent on "something"- (ramping up production) and so CMM should be cash positive for March.
If the company is cash + .. then every day that goes by the merger becomes less and less attractive.
Transparency should require that come voting time in May, the BOD should be reporting that "CMM is no longer bleeding cash so is viable as a stand alone operation" and then they need to make the case as to how they think the merger is going to maximize shareholder value.
I think there are a few cards yet to be played in this poker game.
Don't forget the $4 million released from Deutshe Bank on October 19.
NSX001
Go to the CMM web site. Go to the technical report. Pg iii,iv,v are the resource summary U want
For those who are interested
Dennis Boyko submitted a valuation report on CMM on March 24 2011 valuing CMM @ C$3.54 based on the current NI43-101 resources disclosures. Just Google "century mining valuation" to read his report
"Century Mining Valuation"
That is good news, I wonder how much they would evaluate WTG? Say about $0.28 or so LMHO...
Century has loads of potential, no wonder the Tigers are after her so bad, I think it’s about time we put them back on the leash come voting time.
Dennis Boyko's valuation is WAY out of date. The March 24, 2011, date at the top of that web page is irrelevant and misleading. The actual valuation was done over a year ago.
Proof: note where it says "As Lamaque production starts up in Q2 2010" and "Lamaque is already financed through private placements at the end of 2009".
I'm not saying his numbers are wrong (actually, they sort of low ball things if you look long term) but his analysis ignores more than a year's worth of events.
Let me add to what I just said. It is not hard to run the numbers on a hand calculator using conservative figures and come up with a valuation for CMM that is well over $10 per share.
But that is long term based on the value of the gold in the ground, assuming financing is available, assuming it can be mined, etc., etc.
It's true 'value' today is significantly below that, if you take into account the various risks that exist.
I'm not stating what the value is, except that it (IMHO) is above where we are now, though still far below $10.
Good catch Dave, I noticed that before on another price update but the March ** 2011 date threw me off.
Quick question, say this merger does not go through, what guarantee do we have that the current BOD will do a good job in accelerating production? I wonder if they would cause delays on purpose, and to hurt the company and all who have shares.
Maybe we should send carib, production05, payday and wingfong to investigate on site.
"what guarantee do we have that the current BOD will do a good job in accelerating production? I wonder if they would cause delays on purpose, and to hurt the company and all who have shares."
If you are even willing to entertain such thoughts, why are you still invested?
Really, that applies to any company. Not only CMM.
Remaining invested only to vote NO or to dissent in order to make a point ... well, I think that is stupid investing. You have to take the emotion out of it.
Remaining invested only to vote NO or to dissent in order to make a point ... well, I think that is stupid investing. You have to take the emotion out of it.
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I'm remaining invested to vote NO and also because I don't see the point in selling my shares @ .49 when CMM is worth 5x that.
Now rumors are circulating that WTG is calling up CMM shareholders to get them to vote yes - Severstal the Sequel. Supposedly we're all going to be convinced once the MIC comes out!
**If the proposed merge is a win-win for all parties involved, then cold-calling CMM shareholders to "convince them" its a good deal wouldn't be necessary!**
One really needs to question the motives of people who do this. If we were on the TSX I'm certain they would add the fear of delisting to the list of threats as well - thank g_d we're still on the Venture.
I think "they" (Finisky & Co) are in a panic because the CMM share price is within 4c of where it was trading in December when the company was only mining 700 tpd. We're mining double that now.
A low shareprice is not going to convince people to trade in 1/2 their shares at .49.
I wish they would call me. They can talk all they want about White Tiger adding value, but if it were true CMM would be well over $1.00.
I got (5, 1.2, 1.5,2.5, and 4) for a total of 14.2 M since September.
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Funny how this adds up to almost $15M...the same amount of $ Kirkland/Finikski owed CMM with their warrants!
Had Finiksi exercised the warrants it would have cost $15M and he'd own 44%.... now with the White Tiger merge he will own 55% and it only costs him $20M.
Is there any way for CMM shareholders to force Finisky to retroactively exercise his warrents (ie. selling them was illegal)?
Or are we all out of luck because he sold them?
Maybe a lawsuit is in order.
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