BLAINE, WA, Oct. 14 /CNW/ - Century Mining Corporation (CMM: TSX-V) today announced that, subject to regulatory approval, it will complete a non-brokered private placement of C$5.25 million comprised of flow-through shares.
The Company will issue 26,250,000 common shares on a flow-through basis at an issue price of $0.20 per share.
The Company will pay Union Securities Ltd. for introducing subscribers to the Company a finder's fee of cash equal to 7% of the aggregate gross proceeds, and broker warrants equal to 7% of the aggregate number of flow-through shares. Each broker warrant shall be exercisable for 18 months from the date of issue and shall entitle the holder to purchase a common share of the Company for a price of $0.20. The flow-through share issuance is subject to approval by the TSX Venture Exchange. Closing of the private placement is expected to occur on or before October 23, 2009. All of the securities issued under these private placements will be subject to a four-month hold period.
The proceeds from this offering will be used for the underground diamond drill program at Lamaque, the ongoing Vulcan computer modeling project, and resource and mine planning. Drilling is currently underway at the Bedard dyke.
As a result of this private placement and the deletion of the Etruscan share acquisition from the financing term sheet described in the Century Mining press release issued September 15, 2009, the Company will be proceeding directly to the closing of the private placement to Kirkland Intertrade Corp. and Gravity Ltd. and the prepaid gold forward facility without completing the $4 million interim bridge loan referred to in the term sheet. For more information, refer to the Century Mining press releases issued July 30, 2009 and September 15, 2009.
Commenting on the private placement announced today, Margaret Kent, President & CEO of Century, said, "We are pleased to be able to simplify the large transaction and complete the flow-through private placement described above. This allows us to continue our exploration and mine development efforts in preparation for the start up of the Lamaque mining project, which will commence as soon as the larger financing is completed."
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 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Caution Concerning Forward-Looking Information
This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
SOURCE CENTURY MINING CORPORATION
For further information: For further information: Brent Jones, Manager of Investor Relations, E-mail: email@example.com, Phone: (877) 284-6535 or (360) 332-4653, Fax: (360) 332-4652, Website: www.centurymining.com