1) The constantly improving economics is narrowing the timeframe for achieving positive cash flow at Lamaque. We now have a good shot at getting there around the 5th month after first gold pour (not after start up), due to the following reasons:
* Mechanical mining is planned for months 4 to 6.
* The gold price is essentially US$1,100 right now. In a nutshell, we only have to lower our cash cost per oz to that level in order to break even operationally while we ramp up during the start up period. It makes our job much easier than if the gold price was say US$700 (as it was not too long ago). On top of that, a number of experts are now expecting the gold price to reach US$1,500 by June 2010. The way I see it, any gold price between US$1,100 and US$1,500 by June of next year just further improves our chances to achieve positive cash flow earlier in the ramp up phase.
2) Now, this next opportunity has the potential to be a real game changer for our reserves and also our production ounces in years 1, 2 and 3.
As we know, the company is planning to mine ounces located within 1,000 ft of the surface in the first 3 years. The locations they will be mining from during that period are as follows:
* The North Wall Zone - 256,708 P&P Reserves currently
* The Sigma West Zone - 22,108 P&P Reserves currently (but this is before adding in the Bedard Dyke ounces, which is being aggressively drilled right now, and should be material)
* The Cross-Over Zone - 0 P&P Reserves right now (but look below)
Now, here is the huge opportunity. In 2007, when we first learned about the discovery of the Cross-Over Zone, we were told that the ounces were located within 1,000 ft of the surface and we were also told that there were 1.7M new "virgin" ounces.
Take a look at M&I and Inferred ounces for the Cross-Over Zone. There are 530,098 M&I Cross-Over Zone ounces in our 43-101 report and 1,126,475 Inferred Cross-Over Zone ounces, for a total of 1,656,573 Cross-Over Zone ounces (close to the 1.7M virgin ounces that was talked about in 2007, being located 1,000 ft of the surface).
If I ran Century I would be drilling these Cross-Over Zone ounces hard right now - I would especially be focused on bringing most of the 530,098 M&I ounces in Reserves immediately. What could that do to our near-term production totals?
In addition, the North Wall Zone has 407,672 Inferred ounces. I would be drilling these ounces madly into reserves also.
As you can see, the opportunity to exponentially increase near-term reserves (1,000 ft of the surface) and increase near-term production appears to be enormous for all 3 near-term targeted mining zones (The North Wall Zone, The Sigma West Zone, The Cross-Over Zone).
I really hope this is what the $4M exploration funding is for. The company would be nuts not to execute the exploration plan I just described above.
Thursday, November 5, 2009
Peggy Smith, Fran Scola, and Maxim Finskiy together outside CMM?
Source: http://nbbusinessjournal.canadaeast.com/journal/article/847187
The investors behind a firm planning to reopen the Caribou mine near Bathurst hope there might be enough ore deep in the ground to extend its life at least another two decades.
Fran Scola, one of three principal financial backers of Maple Minerals Corp., said Wednesday the company knows the mine - only operable with high market prices for zinc - is forecast to be out of ore in a few years' time.
"If my memory serves me right, seven to nine years," Scola said. "But we hope there's potential with drilling to find more ore, deeper.
"We hope that if we can restart the mine, the economics are favourable and we get the necessary support from the local government, that we could run this mine for 20 to 30 years, with some luck and some deep exploration," Scola said.
The company believes it can achieve low-cost production of zinc, lead and silver at Caribou.
Maple Minerals Corp. recently completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines Inc., the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed about a year ago.
Blue Note went into receivership last February and declared bankruptcy in July; Bob Smith of PricewaterhouseCoopers LLP is negotiating the sale with Maple Minerals Corp.
Smith said Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and if the court approves Stage 2 early next month, the company will pay US$1.25 million for the mines, land, buildings and other assets.
"The deal we struck is we will both work hip-to-hip to make this mine work if we can," Smith said, pointing out Maple Minerals is getting good bang for its buck: Blue Note had invested about $150 million into the mine before halting operations.
Maple Minerals currently has experts poring over old data from the Caribou mine to look at the economic feasibility of reopening, Scola said. He said the company plans to leave the Restigouche open-pit mine untouched; it is nearly out of minerals and too close to a salmon preserve Maple Minerals does not want to risk polluting.
Under new ownership, the Caribou mine could employ as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.
"Our hope is to reopen and our hope is the employment levels would be the same," Scola said.
The company will be looking for government support he but did not specify whether this would be financial or otherwise.
"We don't know everything for sure because we're still examining the situation but we would like the government to create the kind of atmosphere that would give us the best chance for success," Scola said.
"Like anything, it's always a partnership between public and private."
Geoffrey Cowley, appointed the company's CEO, is by trade a metallurgist who has significant experience in metal mining operations in Africa, Asia, Middle East and in the countries of the former Soviet Union.
Cowley was previously CEO of Kinross Gold Corp. (TSX:K) in Russia and before that served as chief executive of Strikeforce Mining and Resources PLC, a large Russian mining company.
The principle investor in Maple Minerals is Maxim Finskiy, who formed Russia's Norilsk Nickel as well as Polyus Gold - the country's largest gold company.
Peggy Smith, president, CEO and chairwoman of Century Mining Corp. (TSX.V:CMM), is also a key investor.
Scola considers himself a venture capital investor for mining companies; he sits on the board of seven public and private mining firms and has investments in several others.
The investors behind a firm planning to reopen the Caribou mine near Bathurst hope there might be enough ore deep in the ground to extend its life at least another two decades.
Fran Scola, one of three principal financial backers of Maple Minerals Corp., said Wednesday the company knows the mine - only operable with high market prices for zinc - is forecast to be out of ore in a few years' time.
"If my memory serves me right, seven to nine years," Scola said. "But we hope there's potential with drilling to find more ore, deeper.
"We hope that if we can restart the mine, the economics are favourable and we get the necessary support from the local government, that we could run this mine for 20 to 30 years, with some luck and some deep exploration," Scola said.
The company believes it can achieve low-cost production of zinc, lead and silver at Caribou.
Maple Minerals Corp. recently completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines Inc., the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed about a year ago.
Blue Note went into receivership last February and declared bankruptcy in July; Bob Smith of PricewaterhouseCoopers LLP is negotiating the sale with Maple Minerals Corp.
Smith said Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and if the court approves Stage 2 early next month, the company will pay US$1.25 million for the mines, land, buildings and other assets.
"The deal we struck is we will both work hip-to-hip to make this mine work if we can," Smith said, pointing out Maple Minerals is getting good bang for its buck: Blue Note had invested about $150 million into the mine before halting operations.
Maple Minerals currently has experts poring over old data from the Caribou mine to look at the economic feasibility of reopening, Scola said. He said the company plans to leave the Restigouche open-pit mine untouched; it is nearly out of minerals and too close to a salmon preserve Maple Minerals does not want to risk polluting.
Under new ownership, the Caribou mine could employ as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.
"Our hope is to reopen and our hope is the employment levels would be the same," Scola said.
The company will be looking for government support he but did not specify whether this would be financial or otherwise.
"We don't know everything for sure because we're still examining the situation but we would like the government to create the kind of atmosphere that would give us the best chance for success," Scola said.
"Like anything, it's always a partnership between public and private."
Geoffrey Cowley, appointed the company's CEO, is by trade a metallurgist who has significant experience in metal mining operations in Africa, Asia, Middle East and in the countries of the former Soviet Union.
Cowley was previously CEO of Kinross Gold Corp. (TSX:K) in Russia and before that served as chief executive of Strikeforce Mining and Resources PLC, a large Russian mining company.
The principle investor in Maple Minerals is Maxim Finskiy, who formed Russia's Norilsk Nickel as well as Polyus Gold - the country's largest gold company.
Peggy Smith, president, CEO and chairwoman of Century Mining Corp. (TSX.V:CMM), is also a key investor.
Scola considers himself a venture capital investor for mining companies; he sits on the board of seven public and private mining firms and has investments in several others.
Wednesday, November 4, 2009
2nd item from Nov. 2nd-I apologize if this has been included in another post.
CENTURY MINING CORPORATION
NOTICE
ATTENTION: SHAREHOLDERS OF CENTURY MINING CORPORATION
This Notice accompanies, and should be read in conjunction with, the management proxy circular (the “Circular”) of Century Mining Corporation (the “Company”) dated October 27, 2009 in respect of the special meeting of shareholders of the Company to be held on Monday, November 23, 2009.
With respect to the Company‟s proposed $21,000,000 Private Placement of Units (see “Particulars of Matters to be Acted Upon at the Meeting – Private Placement” in the Circular), please note the following amendments to the Private Placement and to the disclosure in the Circular:
(i) Of the 105,000,000 Units to be issued under the Private Placement, the Common Shares issued in connection with up to 20,000,000 Units may be issued on a „flow-through‟ basis (the “Flow-Through Units”). All other aspects of the Flow-Through Units, if issued as such, will remain the same as for the Units. For greater certainty, the Flow-Through Units, if issued, will be issued at Cdn$0.20 per Flow-Through Unit with each Flow-Through Unit consisting of one „flow-through‟ Common Share and one-half of one Common Share purchase warrant. Each whole Warrant will entitle the holder to purchase one Common Share at price of Cdn$0.30 for a period of 18 months, subject to the Company‟s right to accelerate the expiry date of the Warrants as set out in the Circular.
(ii) If Flow-Through Units are issued, of the net proceeds to be received by the Company from the Private Placement, up to $4,000,000 will be used to incur Canadian exploration expenses (“CEE”). Such CEE will be renounced to applicable subscribers.
The above change was made subsequent to the date and printing of the Circular. We apologize for the confusion.
Capitalized terms used herein but not defined herein, have the meaning given to such terms as set out in the Circular.
BY ORDER OF THE BOARD
(signed) Margaret M. Kent
MARGARENT M. KENT
Chairman, President and CEO
NOTICE
ATTENTION: SHAREHOLDERS OF CENTURY MINING CORPORATION
This Notice accompanies, and should be read in conjunction with, the management proxy circular (the “Circular”) of Century Mining Corporation (the “Company”) dated October 27, 2009 in respect of the special meeting of shareholders of the Company to be held on Monday, November 23, 2009.
With respect to the Company‟s proposed $21,000,000 Private Placement of Units (see “Particulars of Matters to be Acted Upon at the Meeting – Private Placement” in the Circular), please note the following amendments to the Private Placement and to the disclosure in the Circular:
(i) Of the 105,000,000 Units to be issued under the Private Placement, the Common Shares issued in connection with up to 20,000,000 Units may be issued on a „flow-through‟ basis (the “Flow-Through Units”). All other aspects of the Flow-Through Units, if issued as such, will remain the same as for the Units. For greater certainty, the Flow-Through Units, if issued, will be issued at Cdn$0.20 per Flow-Through Unit with each Flow-Through Unit consisting of one „flow-through‟ Common Share and one-half of one Common Share purchase warrant. Each whole Warrant will entitle the holder to purchase one Common Share at price of Cdn$0.30 for a period of 18 months, subject to the Company‟s right to accelerate the expiry date of the Warrants as set out in the Circular.
(ii) If Flow-Through Units are issued, of the net proceeds to be received by the Company from the Private Placement, up to $4,000,000 will be used to incur Canadian exploration expenses (“CEE”). Such CEE will be renounced to applicable subscribers.
The above change was made subsequent to the date and printing of the Circular. We apologize for the confusion.
Capitalized terms used herein but not defined herein, have the meaning given to such terms as set out in the Circular.
BY ORDER OF THE BOARD
(signed) Margaret M. Kent
MARGARENT M. KENT
Chairman, President and CEO
The 0,5-1,5 million dollar deal still with us?
Hi
I mailed the IR( i know Brent has left the company ), i let you know. In the Circular i can't see anything about it, but the thing that could stand against it, is this: that we get more from the ~61k expanded gold deal ounces wise, then from the original deal. It also say´s that the money could change, and because of the current gold price and if it remains, maybe just maybe we may get even better conditions. This money is important especially if it's net money as i understand it is, it would currently give us US$1,5M per year*5= US$7,5M / Juha
I mailed the IR( i know Brent has left the company ), i let you know. In the Circular i can't see anything about it, but the thing that could stand against it, is this: that we get more from the ~61k expanded gold deal ounces wise, then from the original deal. It also say´s that the money could change, and because of the current gold price and if it remains, maybe just maybe we may get even better conditions. This money is important especially if it's net money as i understand it is, it would currently give us US$1,5M per year*5= US$7,5M / Juha
Tuesday, November 3, 2009
Something to think about
(while we wait)
I wouldn’t be totally surprised if we are up to 7,000,000 ounces now, if we lower our cutoff grade / increase our gold price to around US$900 plus toss in a few historical ounces (non-43-101) from our minor properties.
In 2007, Century published (in a presentation) u/g ounces based on a cutoff of 2.5 g/t vs 3.5 g/t. The difference in the 2.5 vs 3.5 cutoff grade itself works out to 29%. That 1 g/t change in grade resulted in a 32% change in resource ounces (2,015,000 ounces vs 2,655,000 ounces). In that example the resource ounces (M&I and Inferred) changed similarly to the percentage change in cutoff grade.
Let’s apply that same logic to our current situation.
If you look on pages iii and iv of the most recent Lamaque technical rpt you will notice that the 960,094 (new) ounces added to Lamaque’s 43-101 resource total in 2009 was calculated using a cutoff grade of 2.1 g/t. This is likely due to the gold price being high for an extended period of time. You will also notice that the other 4,589,547 ounces (that make up the current Lamaque 43-101 total of 5,549,641 ounces) was based on a cutoff grade of 2.5 g/t. The 2.5 g/t was from the January 2008 calculation which used an US$800 gold price. The 2.1 g/t grade cutoff ounces likely uses a gold price around US$900 - more reflective of today’s gold price (but still conservative given our current US$1,085 price). All of this strongly indicates that the 4,589,547 ounces need to be recalculated using a lower cutoff grade / higher gold price. Century likely needs to bring the original person back in to perform the recalculation. Hopefully they will use some of the flow-through money to do this in the near future.
Until then, let’s see if we can come up with a wild ballpark estimate of what the new numbers might look like.
Lamaque:
Original cutoff grade of 2.5 g/t vs current cutoff grade of 2.1 g/t = 16% change
Lamaque ounces still stated at 2.5 cutoff of 4,589,547 * 1.16 = 5,323,875 ounces (after lowering cutoff to 2.1 g/t)
Wild ballpark estimate of Lamaque using 2.1 cutoff = 5,323,875 + 960,094 = 6,283,969 ounces
San Juan:
Let’s apply the same logic to San Juan (using the same percentage to keep it simple):
377,916 ounces * 1.16 = 438,383 ounces
Lamaque and San Juan (ballpark recalculation):
6,283,969 ounces + 438,383 ounces = 6,722,351 ounces
Of course, the actual recalculation would be much more complex that this. Although basic logic would suggest that our current 43-101 resource count should be around this ballpark number, we all know that there are no guarantees due to a lot of other factors to be considered during the actual calculation. Obviously, no one should make investment decisions based on such high level assumptions and calculations.
Also, just for fun, let’s see if we can come up with close to 7,000,000 combined recalculated and historical ounces for Century.
Northbelt property (Yellowknife, NWT) – historical, non-43-101 ounces:
Our property has a strike length of 15 kilometers, along a volcanic belt that has produced over 10 million ounces.
We have at least 2 gold deposits on the property that I am aware of.
Our current resource total = 175,000 ounces (historical, non-43-101)
130,000 ounces @ 4.00 g/t (Nebex calculation in the 90s)
45,000 ounces @ 10.30 g/t (Crestarum deposit)
Both gold deposits appear to be open.
There seems to be a large zinc deposit also (which appears to be open) and numerous other showings as well.
Of course, as we all know, Century has much more higher priorities right now. We probably wouldn’t be able to get to Northbelt for another couple of years. It seems to have really good potential though.
Fyi, the Yellowknife area is starting to get active in gold mining again, led by a company call Tyhee Development Corp. They did a really good job with exploring their deposit. I think the grade might be a tad on the lower end though, but they seem to want to develop it to production stage in about 3 years. They don’t seem to be having problems with permitting or any other local tasks. I think they are trying to raise the cash to move forward with development.
Our large Northbelt property appears to be prime real estate for the area (along the volcanic belt). If gold mining really heats up there then we are positioned well.
Aumaque property (near Lamaque) – historical, non-43-101 ounces:
Our current resource total = 68,000 ounces (historical, non-43-101)
51,000 ounces @ 8.57 g/t (original work)
17,000 ounces @ 6.03 g/t (Alotta work in the late 80s)
7,000,000 combined recalculated and historical ounces for Century:
6,722,351 + 175,000 + 48,000 = 6,965,351 ounces
I wouldn’t be totally surprised if we are up to 7,000,000 ounces now, if we lower our cutoff grade / increase our gold price to around US$900 plus toss in a few historical ounces (non-43-101) from our minor properties.
In 2007, Century published (in a presentation) u/g ounces based on a cutoff of 2.5 g/t vs 3.5 g/t. The difference in the 2.5 vs 3.5 cutoff grade itself works out to 29%. That 1 g/t change in grade resulted in a 32% change in resource ounces (2,015,000 ounces vs 2,655,000 ounces). In that example the resource ounces (M&I and Inferred) changed similarly to the percentage change in cutoff grade.
Let’s apply that same logic to our current situation.
If you look on pages iii and iv of the most recent Lamaque technical rpt you will notice that the 960,094 (new) ounces added to Lamaque’s 43-101 resource total in 2009 was calculated using a cutoff grade of 2.1 g/t. This is likely due to the gold price being high for an extended period of time. You will also notice that the other 4,589,547 ounces (that make up the current Lamaque 43-101 total of 5,549,641 ounces) was based on a cutoff grade of 2.5 g/t. The 2.5 g/t was from the January 2008 calculation which used an US$800 gold price. The 2.1 g/t grade cutoff ounces likely uses a gold price around US$900 - more reflective of today’s gold price (but still conservative given our current US$1,085 price). All of this strongly indicates that the 4,589,547 ounces need to be recalculated using a lower cutoff grade / higher gold price. Century likely needs to bring the original person back in to perform the recalculation. Hopefully they will use some of the flow-through money to do this in the near future.
Until then, let’s see if we can come up with a wild ballpark estimate of what the new numbers might look like.
Lamaque:
Original cutoff grade of 2.5 g/t vs current cutoff grade of 2.1 g/t = 16% change
Lamaque ounces still stated at 2.5 cutoff of 4,589,547 * 1.16 = 5,323,875 ounces (after lowering cutoff to 2.1 g/t)
Wild ballpark estimate of Lamaque using 2.1 cutoff = 5,323,875 + 960,094 = 6,283,969 ounces
San Juan:
Let’s apply the same logic to San Juan (using the same percentage to keep it simple):
377,916 ounces * 1.16 = 438,383 ounces
Lamaque and San Juan (ballpark recalculation):
6,283,969 ounces + 438,383 ounces = 6,722,351 ounces
Of course, the actual recalculation would be much more complex that this. Although basic logic would suggest that our current 43-101 resource count should be around this ballpark number, we all know that there are no guarantees due to a lot of other factors to be considered during the actual calculation. Obviously, no one should make investment decisions based on such high level assumptions and calculations.
Also, just for fun, let’s see if we can come up with close to 7,000,000 combined recalculated and historical ounces for Century.
Northbelt property (Yellowknife, NWT) – historical, non-43-101 ounces:
Our property has a strike length of 15 kilometers, along a volcanic belt that has produced over 10 million ounces.
We have at least 2 gold deposits on the property that I am aware of.
Our current resource total = 175,000 ounces (historical, non-43-101)
130,000 ounces @ 4.00 g/t (Nebex calculation in the 90s)
45,000 ounces @ 10.30 g/t (Crestarum deposit)
Both gold deposits appear to be open.
There seems to be a large zinc deposit also (which appears to be open) and numerous other showings as well.
Of course, as we all know, Century has much more higher priorities right now. We probably wouldn’t be able to get to Northbelt for another couple of years. It seems to have really good potential though.
Fyi, the Yellowknife area is starting to get active in gold mining again, led by a company call Tyhee Development Corp. They did a really good job with exploring their deposit. I think the grade might be a tad on the lower end though, but they seem to want to develop it to production stage in about 3 years. They don’t seem to be having problems with permitting or any other local tasks. I think they are trying to raise the cash to move forward with development.
Our large Northbelt property appears to be prime real estate for the area (along the volcanic belt). If gold mining really heats up there then we are positioned well.
Aumaque property (near Lamaque) – historical, non-43-101 ounces:
Our current resource total = 68,000 ounces (historical, non-43-101)
51,000 ounces @ 8.57 g/t (original work)
17,000 ounces @ 6.03 g/t (Alotta work in the late 80s)
7,000,000 combined recalculated and historical ounces for Century:
6,722,351 + 175,000 + 48,000 = 6,965,351 ounces
Monday, November 2, 2009
New Poll
I wish to extend my appreciation and sincere thanks to Production05 for essentially providing all of the content for this blog for many months now. I haven't had the time to add very much and frankly until we see some real proof that this management can execute and for once do what they say they will do, no one is going to take the company very seriously. The latest news release announcing the receipt of just $1.3 million after telling us to expect $5.5 million not later than October 23 is just another example.
I'm looking forward to the "Change of Control" more than getting the $21 million. If that happens, we will finally enter a new era where the value of our assets is not severely discounted because of who the management is. In that regard, I've added a new poll asking the simple question "Do you believe the $21 million PP will close".
I've also added a new link to the Circular that describes the conditions of the PP that the investors are being asked to approve. That one is a no-brainer. Every shareholder should read it and vote, although I believe a non-vote is the same as a Yes vote.
I remember Peter posting last week that his Canaccord broker couldn't get him a piece of the PP. I don't know why not unless it is because the two biggest sellers last week were the dynamic duo of Canaccord and "Anonymous". If I were as short as they were I wouldn't want anyone contributing to a CMM PP.
Finally, if we can close the PP, then I see this blog becoming more relevant and active again. In that regard I'd like to see some posters that can only "comment" send me an email requesting membership so that they can freely post. This would apply to yikes1, juha, rock3030, rick and rhump to name a few. Unfortunately "comments" have to be moderated to keep out the wilful bashing and there can be a considerable lag from the time you post until I see and authorize the comment. There is no moderation of members' posts.
I'm looking forward to the "Change of Control" more than getting the $21 million. If that happens, we will finally enter a new era where the value of our assets is not severely discounted because of who the management is. In that regard, I've added a new poll asking the simple question "Do you believe the $21 million PP will close".
I've also added a new link to the Circular that describes the conditions of the PP that the investors are being asked to approve. That one is a no-brainer. Every shareholder should read it and vote, although I believe a non-vote is the same as a Yes vote.
I remember Peter posting last week that his Canaccord broker couldn't get him a piece of the PP. I don't know why not unless it is because the two biggest sellers last week were the dynamic duo of Canaccord and "Anonymous". If I were as short as they were I wouldn't want anyone contributing to a CMM PP.
Finally, if we can close the PP, then I see this blog becoming more relevant and active again. In that regard I'd like to see some posters that can only "comment" send me an email requesting membership so that they can freely post. This would apply to yikes1, juha, rock3030, rick and rhump to name a few. Unfortunately "comments" have to be moderated to keep out the wilful bashing and there can be a considerable lag from the time you post until I see and authorize the comment. There is no moderation of members' posts.
Door still open for the "Investor" to take down some of the remaining $2.7M FT bridge financing?
The wording gives me that impression. Perhaps an associate or affiliate of the group has a need for Canadian tax benefits.
From today's NR: "Together with previously acquired securities, following closing of the Private Placement, assuming full subscription of the $21,000,000 and excluding any flow-through shares purchased by the Investor pursuant to the Flow-Through Financing, the Investor, together with its associates and affiliates, will hold 112,142,857 Common Shares (164,642,857 Common Shares assuming exercise of its warrants) representing approximately 33.9% of the issued and outstanding Common Shares (42.9% assuming exercise of its warrants)."
From today's NR: "Together with previously acquired securities, following closing of the Private Placement, assuming full subscription of the $21,000,000 and excluding any flow-through shares purchased by the Investor pursuant to the Flow-Through Financing, the Investor, together with its associates and affiliates, will hold 112,142,857 Common Shares (164,642,857 Common Shares assuming exercise of its warrants) representing approximately 33.9% of the issued and outstanding Common Shares (42.9% assuming exercise of its warrants)."
Big emphasis on near-term Lamaque exploration
This is my interpretation of the numbers. The C$25M (US$23M prepaid gold sales, excluding the extra US$10M that will go into the production reserve account at the beginning) plus the C$16M PP equates to C$41M, which is plenty enough to restart Lamaque.
That leaves the C$5M (with stand by guarantee from the Investor) as more than enough funds to go towards cleaning up small liabilities on the Balance Sheet before closing off the bank financing.
That then leaves the C$4M bridge financing to go almost entirely towards surface exploration at Lamaque and work on Vulcan resource modeling.
From the NR:
“Proceeds from the Flow-Through Financing will be used for surface exploration at the Lamaque property and to further delineate reserves and resources.”
“The Private Placement, when combined with the Bank Financing, will provide the Company with approximately $57 million of capital to restart the Lamaque underground gold mine project, located in Val d'Or Quebec. Furthermore, the additional $4 million from the Flow-Through Financing will allow for continued exploration on Century's extensive land position.”
They specially mentioned surface exploration at Lamaque. We know that they are drilling the Bedard Dyke (perhaps from both the surface and from within the pit). I wonder if they will also be drilling the M&I ounces located from 0 to 1,000 feet of the surface, in order to increase the near surface reserves. Off the top of my head I can’t recall how deep a standard drill (or even a deep drill) can reach from the surface.
Here is where this aggressive drilling can be a game changer during the ramp up period. If they are aggressively drilling near surface M&I ounces into reserves (in areas easily accessible for near-term mining) then we could be looking at higher production ounces in the ramp up period than previously forecasted.
That leaves the C$5M (with stand by guarantee from the Investor) as more than enough funds to go towards cleaning up small liabilities on the Balance Sheet before closing off the bank financing.
That then leaves the C$4M bridge financing to go almost entirely towards surface exploration at Lamaque and work on Vulcan resource modeling.
From the NR:
“Proceeds from the Flow-Through Financing will be used for surface exploration at the Lamaque property and to further delineate reserves and resources.”
“The Private Placement, when combined with the Bank Financing, will provide the Company with approximately $57 million of capital to restart the Lamaque underground gold mine project, located in Val d'Or Quebec. Furthermore, the additional $4 million from the Flow-Through Financing will allow for continued exploration on Century's extensive land position.”
They specially mentioned surface exploration at Lamaque. We know that they are drilling the Bedard Dyke (perhaps from both the surface and from within the pit). I wonder if they will also be drilling the M&I ounces located from 0 to 1,000 feet of the surface, in order to increase the near surface reserves. Off the top of my head I can’t recall how deep a standard drill (or even a deep drill) can reach from the surface.
Here is where this aggressive drilling can be a game changer during the ramp up period. If they are aggressively drilling near surface M&I ounces into reserves (in areas easily accessible for near-term mining) then we could be looking at higher production ounces in the ramp up period than previously forecasted.
Century Mining Announces Financing Updates
Century Mining Announces Financing Updates
- Files circular for shareholder meeting for approval of private
placement -
- Closes $1.3 million of "flow-through" equity financing -
- Increases equity financings by an additional $5 million -
BLAINE, WA, Nov. 2 /CNW/ - Century Mining Corporation (CMM: TSX-V) ("Century" or the "Company") announces that it has closed a portion of the flow-through equity financing originally announced on October 14, 2009 (the "Flow-Through Financing") and has filed on SEDAR the circular for a special meeting of shareholders to approve the private placement of units to Kirkland Intertrade Corp. ("Kirkland") and Gravity Ltd. ("Gravity") (together, the "Investor") which was announced originally on September 15, 2009 (the "Private Placement").
The Company announced today that the Flow-Through Financing of $5.25 million comprised of common shares issued on a "flow-through" basis at $0.20 per share has been reduced to $4 million and that $1.3 million of that amount has been closed. The remaining $2.7 million is expected to close in November. Proceeds from the Flow-Through Financing will be used for surface exploration at the Lamaque property and to further delineate reserves and resources.
The special meeting of shareholders has been scheduled for Monday November 23, 2009 at 11:00am Pacific Standard Time at the Vancouver Club in Vancouver, British Columbia. The proxy circular has been mailed to shareholders and is available for review on SEDAR.
The Company's Board of Directors has unanimously recommended that shareholders approve, among other things, the amendment of the Company's Shareholder Rights Plan to enable the Private Placement to the Investor to be completed. Members of management holding common shares of the Company have executed voting support agreements to vote their shares in favour of the resolution authorizing and approving a $21 million private placement of units of the Company (as described below), the creation of new 'control persons' of the Company and the consequent amendment of the Company's Shareholder Rights Plan.
With respect to the Private Placement, Century has agreed, subject to entering into mutually agreeable subscription agreements, to issue an aggregate of 105,000,000 units ("Units") at $0.20 per Unit for gross proceeds of $21,000,000 increased from $20,000,000 originally announced on September 15, 2009. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the Company at a price of $0.30 for a period of 18 months. Of the 105,000,000 Units to be issued under the Private Placement, the common shares issued in connection with up to 20,000,000 Units may be issued on a 'flow-through' basis (the "Flow-Through Units"). All other aspects of the Flow-Through Units, if issued as such, will remain the same as for the Units. The Flow-Through Units, if issued, will be issued at $0.20 per Flow-Through Unit with each Flow-Through Unit consisting of one 'flow-through' common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.30 for a period of 18 months. In combination with the $4 million of flow-through shares described above, the total equity issuance of $25 million represents a $5 million increase in the amount of funds raised through equity financings.
The Investor has agreed, subject to entering into mutually acceptable subscription agreements, that with its associates and affiliates, it will subscribe for $16,000,000 of Units. If additional purchasers acceptable to Century and the Investor are not identified and binding subscription agreements are not entered into prior to closing of the Private Placement for the remaining $5,000,000 of Units, the Investor has agreed, subject to entering into mutually agreeable subscription agreements, to subscribe for the remaining $5,000,000 of Units.
Together with previously acquired securities, following closing of the Private Placement, assuming full subscription of the $21,000,000 and excluding any flow-through shares purchased by the Investor pursuant to the Flow-Through Financing, the Investor, together with its associates and affiliates, will hold 112,142,857 Common Shares (164,642,857 Common Shares assuming exercise of its warrants) representing approximately 33.9% of the issued and outstanding Common Shares (42.9% assuming exercise of its warrants).
The Company also announced an update to the prepaid gold forward sale financing facility (the "Bank Financing") with a major international bank ("the Bank") which was originally announced on July 30, 2009. Pursuant to the Bank Financing, subject to minor variations of certain terms based upon fluctuations in gold prices prior to closing of the Bank Financing, the Bank is expected to purchase from Century approximately 61,000 ounces of gold over a five-year term, for which the Bank has agreed to pay to Century, upon closing, US$33 million (of which no more than US$10 million is to be deposited into a performance reserve account). One of the conditions of closing of the Bank Financing is that the Company raise US$16 million of equity, which will be satisfied by the proposed Private Placement.
The Private Placement, when combined with the Bank Financing, will provide the Company with approximately $57 million of capital to restart the Lamaque underground gold mine project, located in Val d'Or Quebec. Furthermore, the additional $4 million from the Flow-Through Financing will allow for continued exploration on Century's extensive land position.
The Company anticipates closing of the Private Placement and the Bank Financing on or before December 4, 2009. All securities issued under the above transactions will be subject to a four-month restriction on resale.
For more information, please refer to the Company's press releases of July 30, 2009, September 15 and 23, 2009 and October 14, 2009, all of which are available on SEDAR and on the Company's web site.
Margaret Kent, President and CEO of Century, commented, "We are very pleased to announce these updates with respect to the equity private placements and the prepaid gold forward sale facility. My management team and I have been working diligently with all of the investor groups and we are encouraged by the progress we have achieved in satisfying the requirements to enable the closing of all of the transactions. Management and the Board of Directors recommend that shareholders approve the Private Placement to Kirkland and Gravity which will facilitate achievement of Century's vision of creating a formidable mid-tier gold producer. This funding allows us to immediately restart our flagship asset and aggressively pursue other production opportunities."
About the Investor
Kirkland is beneficially owned by Maxim Finskiy. Mr. Finskiy is Chief Executive Officer of LLC Intergeo Managing Company, the mining and exploration arm of the private Russian conglomerate Onexim Group, which is Russia's largest investment fund with $25 billion in assets. From 2001 to 2008 he was Deputy General Director and Deputy Chairman of the Management Board of MMC Norilsk Nickel. Mr. Finskiy sits on the Board of Polyus Gold, one of the top world gold producers, incorporated in Russia.
Gravity is the personal investment vehicle of Fran Scola. Mr. Scola is a partner at LFM Partners, a partnership with extensive investments in the natural resources sector. He is a board member of seven different public and private mining companies. He is a former partner of Weintraub Investments, a San Francisco-based hedge fund.
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the start up of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century's wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2007 and 2008 was 63,124 and 14,252 ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
- Files circular for shareholder meeting for approval of private
placement -
- Closes $1.3 million of "flow-through" equity financing -
- Increases equity financings by an additional $5 million -
BLAINE, WA, Nov. 2 /CNW/ - Century Mining Corporation (CMM: TSX-V) ("Century" or the "Company") announces that it has closed a portion of the flow-through equity financing originally announced on October 14, 2009 (the "Flow-Through Financing") and has filed on SEDAR the circular for a special meeting of shareholders to approve the private placement of units to Kirkland Intertrade Corp. ("Kirkland") and Gravity Ltd. ("Gravity") (together, the "Investor") which was announced originally on September 15, 2009 (the "Private Placement").
The Company announced today that the Flow-Through Financing of $5.25 million comprised of common shares issued on a "flow-through" basis at $0.20 per share has been reduced to $4 million and that $1.3 million of that amount has been closed. The remaining $2.7 million is expected to close in November. Proceeds from the Flow-Through Financing will be used for surface exploration at the Lamaque property and to further delineate reserves and resources.
The special meeting of shareholders has been scheduled for Monday November 23, 2009 at 11:00am Pacific Standard Time at the Vancouver Club in Vancouver, British Columbia. The proxy circular has been mailed to shareholders and is available for review on SEDAR.
The Company's Board of Directors has unanimously recommended that shareholders approve, among other things, the amendment of the Company's Shareholder Rights Plan to enable the Private Placement to the Investor to be completed. Members of management holding common shares of the Company have executed voting support agreements to vote their shares in favour of the resolution authorizing and approving a $21 million private placement of units of the Company (as described below), the creation of new 'control persons' of the Company and the consequent amendment of the Company's Shareholder Rights Plan.
With respect to the Private Placement, Century has agreed, subject to entering into mutually agreeable subscription agreements, to issue an aggregate of 105,000,000 units ("Units") at $0.20 per Unit for gross proceeds of $21,000,000 increased from $20,000,000 originally announced on September 15, 2009. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the Company at a price of $0.30 for a period of 18 months. Of the 105,000,000 Units to be issued under the Private Placement, the common shares issued in connection with up to 20,000,000 Units may be issued on a 'flow-through' basis (the "Flow-Through Units"). All other aspects of the Flow-Through Units, if issued as such, will remain the same as for the Units. The Flow-Through Units, if issued, will be issued at $0.20 per Flow-Through Unit with each Flow-Through Unit consisting of one 'flow-through' common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.30 for a period of 18 months. In combination with the $4 million of flow-through shares described above, the total equity issuance of $25 million represents a $5 million increase in the amount of funds raised through equity financings.
The Investor has agreed, subject to entering into mutually acceptable subscription agreements, that with its associates and affiliates, it will subscribe for $16,000,000 of Units. If additional purchasers acceptable to Century and the Investor are not identified and binding subscription agreements are not entered into prior to closing of the Private Placement for the remaining $5,000,000 of Units, the Investor has agreed, subject to entering into mutually agreeable subscription agreements, to subscribe for the remaining $5,000,000 of Units.
Together with previously acquired securities, following closing of the Private Placement, assuming full subscription of the $21,000,000 and excluding any flow-through shares purchased by the Investor pursuant to the Flow-Through Financing, the Investor, together with its associates and affiliates, will hold 112,142,857 Common Shares (164,642,857 Common Shares assuming exercise of its warrants) representing approximately 33.9% of the issued and outstanding Common Shares (42.9% assuming exercise of its warrants).
The Company also announced an update to the prepaid gold forward sale financing facility (the "Bank Financing") with a major international bank ("the Bank") which was originally announced on July 30, 2009. Pursuant to the Bank Financing, subject to minor variations of certain terms based upon fluctuations in gold prices prior to closing of the Bank Financing, the Bank is expected to purchase from Century approximately 61,000 ounces of gold over a five-year term, for which the Bank has agreed to pay to Century, upon closing, US$33 million (of which no more than US$10 million is to be deposited into a performance reserve account). One of the conditions of closing of the Bank Financing is that the Company raise US$16 million of equity, which will be satisfied by the proposed Private Placement.
The Private Placement, when combined with the Bank Financing, will provide the Company with approximately $57 million of capital to restart the Lamaque underground gold mine project, located in Val d'Or Quebec. Furthermore, the additional $4 million from the Flow-Through Financing will allow for continued exploration on Century's extensive land position.
The Company anticipates closing of the Private Placement and the Bank Financing on or before December 4, 2009. All securities issued under the above transactions will be subject to a four-month restriction on resale.
For more information, please refer to the Company's press releases of July 30, 2009, September 15 and 23, 2009 and October 14, 2009, all of which are available on SEDAR and on the Company's web site.
Margaret Kent, President and CEO of Century, commented, "We are very pleased to announce these updates with respect to the equity private placements and the prepaid gold forward sale facility. My management team and I have been working diligently with all of the investor groups and we are encouraged by the progress we have achieved in satisfying the requirements to enable the closing of all of the transactions. Management and the Board of Directors recommend that shareholders approve the Private Placement to Kirkland and Gravity which will facilitate achievement of Century's vision of creating a formidable mid-tier gold producer. This funding allows us to immediately restart our flagship asset and aggressively pursue other production opportunities."
About the Investor
Kirkland is beneficially owned by Maxim Finskiy. Mr. Finskiy is Chief Executive Officer of LLC Intergeo Managing Company, the mining and exploration arm of the private Russian conglomerate Onexim Group, which is Russia's largest investment fund with $25 billion in assets. From 2001 to 2008 he was Deputy General Director and Deputy Chairman of the Management Board of MMC Norilsk Nickel. Mr. Finskiy sits on the Board of Polyus Gold, one of the top world gold producers, incorporated in Russia.
Gravity is the personal investment vehicle of Fran Scola. Mr. Scola is a partner at LFM Partners, a partnership with extensive investments in the natural resources sector. He is a board member of seven different public and private mining companies. He is a former partner of Weintraub Investments, a San Francisco-based hedge fund.
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the start up of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century's wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2007 and 2008 was 63,124 and 14,252 ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
Subscribe to:
Posts (Atom)