Monday, April 11, 2011

Two material business developments

that should have been disclosed to the market immediately via news release, in my opinion.

From the MD&A report on Century`s website (in the subsequent to end of 2010 part of the report):

1) Century received $7,650,000 from warrants (the 25.5 million that Finskiy likely sold to friends) in the recent March and April periods. It`s interesting how the warrants were exercised just prior to last day (cutoff date) for shares being allowed to vote, but yet they were not exercised just a bit earlier in the period of the cone crusher / WTG bridge loan period. I guess one does not have to be a genius to figure out which way the 25.5 million shares will be voting, eh? And, no geniuses required to conclude that the chances are pretty good that these 25.5 million shares will suddenly be allowed to partake in the Majority of Minority vote (where they would have been excluded if were still controlled by Finskiy). Goodness, has anything been so predictable in the history of mankind?

``f) In February 2011, the Company was advised that its significant shareholder had sold substantially all of its remaining warrants which it acquired in December 2009. As a result, the Company‟s right to require the significant shareholder to exercise these warrants became unavailable. However, in March and April 2011, 25,500,000 of these warrants with a weighted average exercise price of $0.30 were exercised for gross proceeds of $7,650,000.``

2) A verbal agreement has been reached at San Juan and a written version is expected with a week. How is this not material news, warranted of an immediate news release to the market?

``g) In April 2011, the milling and processing operations at the Company‟s San Juan Gold mine in Peru have been suspended in compliance with an order from OSINERGMIN (the Supervisory Agency for Energy and Mining Investment of Peru‟s Ministry of Mines ) regarding the tailings disposal areas at the mine, which OSINERGMIN alleged were not properly permitted. The Company provided documentation demonstrating the appropriate permits were properly issued and filed a formal petition to lift the order, and has met with OSINERGMIN and the Ministry of Mines‟ to resolve the dispute. OSINERGMIN has verbally notified the Company that the order has been lifted and written notification is expected within the next week. Management believes that based on their projected startup of the mill that losses will equal at least one week‟s production.``

8 comments:

Gold1 said...

Can we not go after these guys the same way that Al Cap was stopped .. through taxes. IF bus. arrangement goes ahead there will be a significant tax event which we (with a bit of cash and legal assistance) will get Rev Canada to over-turn (re-evaluate). Rev Can is not evil and I have seen them reverse themselves on lesser events. Because these guys are headquartered in BVI they may do a pre-emptive strike not by
undoing a future decision (an impossibility) but by inform THEM they are being investigated for suspicious behaviour OR call in some other branch to investigate.

PayDay said...

CMM receives 7.6M in the warrants being exercised but a $800,000 bridge loan from WTG was still required?

Someone pass the Febreeze b/c this STINKS to high heaven. I hope some members call in tomorrow and grill Major over the coals.

This disgusting sham has gone on long enough!

Uall said...

Woot!! With $7.6mm of fresh capital, CMM should be able to pay the bridge loan back, restart work at North Wall quickly and make the capex that was planned in San Juan. Unless, of course, the management comes up with another lame excuse (i.e. broken crusher, tailing issue in Peru). You would have to be REALLY incompetent to still be cashflow negative otherwise.

bigjohn37 said...

Thanks for your continued vigilance, Production05. The beat goes on at Comrade Finskiy's bunker: deception, intrigue, manipulation, domination, maliciousness, conspiracy to mislead & outmaneuver, etc, etc. Surely, our regulators will not let them to get away with this!!

nt300 said...

This statement from today's NR is positive:
"The Company is projecting 2011 production of a total of 90,000 – 100,000 ounces of gold....Guidance for 2012 remains at production of 120,000 ounces of gold"

But the market's are not reacting that great, IMHO it's because of these 2 mindless statement:
1) We are looking forward to completing the combination with White Tiger Gold Ltd."
2) and to the growth opportunities and financial support that the combination will bring to the operations

They are trying to play us for fools, it won't happen. These shenanigans will hopefully come into the light.

Wingfong said...

It is consistent with the ceo's method to manipulate NRs to suppress, misinform, underinform, mislead investors other than Fin & Co. With so much gold in the ground n the mine n mill so derisked, CMM is doable n it will do very well with a true professional ceo(I do not rate him as one).Over the whole of 2010 I had followed delligently n watched all the baby steps CMM had taken in the ramping up business n it is safe to say that technically CMM now is very much different n so very transformed from the CMM 12 months ago. To me with the price of gold at US$1450 n rising, the success rate of CMM now is akin to shooting a ball a few meters in front of the goal post. What is left is to defeat this deal n thereafter a way has to be found to replace him if he does not resign voluntarily. Going forward I shall expect he may resort to all ways possible in the same trait as it is now clear that his own survival is also tie up with the vote. If the vote is yes, he will stay(backed by Fin n the yes voters). If the No wins, I am certain the vote NO shareholders will be hell bent to get him out.

PayDay said...

Wingfong,

Ha! That's another good question for the CC tomorrow:

If the minority shareholders vote NO to the merger, will you (DM) do the right thing and tender your immediate resignation?

yikes1 said...

funny how a man that sells off warrants and shares turns around and tries to take over the company. I'm not sure how anyone can think that these transactions weren't related.