Century Mining Announces Up To $3.7 Million Of Financings



    BLAINE, WA, Sept. 17 /CNW/ - Century Mining Corporation (CMM: TSX-V)
announced today that it has entered into a term sheet dated September 12, 2008
with U.K.-based Trafalgar Capital Specialized Investment Fund, FIS
("Trafalgar"), pursuant to which Trafalgar will provide to Century a bridge
loan of up to $3.5 million, to be evidenced by a redeemable secured
convertible note (the "Note"). The loan proceeds will serve as bridge
financing, and allow Century to continue mine development, planning and other
preparation activities at its Lamaque Mine. Century intends to repay this
bridge financing through the completion of a financing relating to its Fortis
Facility or through the sale of one or more of its mining properties.
    In accordance with the term sheet, loan proceeds may be disbursed in up
to four tranches, with $1.4 million, less fees and expenses, to be released at
closing. Additional amounts of $850,000 and $720,000, respectively, may, at
Century's request, be advanced at 30 days and 60 days post-closing, subject to
approval by Trafalgar. A final advance of $530,000 may be released at
Century's request at 90 days post-closing, subject to approval by Trafalgar.
    The Note will bear interest at the rate of 12% per annum, compounded
monthly, and will mature on the date which is the earlier of (i) four months
from the closing date, and (ii) the date on which Century completes a
financing transaction relating to the Fortis Facility with minimum proceeds of
$5.0 million. If the Note is not repaid within four months of the closing
date, amounts outstanding thereunder may be converted by Trafalgar into common
shares of Century ("Common Shares") at the fixed conversion price of $0.05
(the "Fixed Conversion Price"), provided that no conversion will be permitted
if it would result in Trafalgar holding greater than 9.99% of the Common
Shares. Provided that the Common Shares are trading at or below the Fixed
Conversion Price, the Century may at any time redeem the Note in exchange for
cash, a 12.5% redemption premium and payment of all accrued interest
outstanding thereunder.
    Subject to the occurrence of an Option Share Redemption (as defined
below), on the Maturity Date, Century will be required to redeem the Note in
exchange for cash, a 7.5% redemption premium and payment of all accrued
interest outstanding thereunder. Alternatively, on the Maturity Date, Century
may elect to redeem the Note in exchange for Common Shares to be issued over a
24-month period (an "Optional Share Redemption"), in lieu of all principal
outstanding, together with a 15% redemption premium, and interest accruing
over such period. In the event of an Optional Share Redemption, Century will
issue to Trafalgar (weekly, in four equal installments) such number of Common
Shares as are equal to the principal, interest and redemption premium owed
pursuant to a monthly payment schedule, divided by the then prevailing market
price of the Common Shares (provided that such market price may not be less
than $0.05 per share).
    The Note financing remains conditional on completion of due diligence and
receipt of TSX-V and other necessary regulatory approval.
    The Note will be secured by a first charge/mortgage over Century's Québec
milling assets, and a second charge/mortgage over Century's Québec mineral
concessions. The terms of the Note will contain provision compensating
Trafalgar for any appreciation of the European Union euro versus the Canadian
dollar. Century will not receive the benefit of a reciprocal adjustment
mechanism should the Canadian dollar strengthen against the euro.
    In connection with the issuance of the Note, Century has agreed to pay to
Trafalgar a commitment fee equal to 7% of the Note proceeds, and issue to
Trafalgar from treasury a total of 15,000,000 Common Shares. At closing,
Century has also agreed to pay a finder's fee of approximately $20,000 to two
arm's length entities. The bridge financing is expected to close within the
next three weeks.
    For Century's immediate need to finalize the due diligence requirements
for Fortis Bank and provide immediate working capital, an officer and director
of Century has subscribed for a $200,000 secured convertible note. The note
will bear interest at 15% and is convertible into units at $0.05 for a term of
18 months. Each unit is comprised of a common share and a common share
purchase warrant exercisable for 18 months at $0.07. The note is secured
against a package of exploration properties.
    Margaret Kent, President and CEO of Century, said, "The combination of
these two financings will provide the immediate and near-term financing
necessary to take Century to a position to draw the senior secured financing
Century is arranging for its Lamaque Project from Fortis Bank."

    About Century Mining Corporation

    Century Mining Corporation is an emerging mid-tier gold producer that is
aggressively acquiring producing mines and exploration properties in Peru in
addition to its Canadian projects. The Company owns and produces gold at the
Lamaque mine in Québec that historically has produced over 9.4 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.

    
    "Margaret M. Kent"

    Chairman, President & CEO

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this press
    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.





For further information:

For further information: Brent Jones, Manager of Investor Relations,
E-mail: bjones@centurymining.com, Phone: (877) 284-6535 or (360) 332-4653,
Fax: (360) 332-4652, Website: www.centurymining.com

Organization Profile

CENTURY MINING CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890