BLAINE, WA, Aug. 28 /CNW/ - Century Mining Corporation (CMM: TSX-V) is
pleased to announce its financial and operating results for the second quarter
ended June 30, 2009.
Second Quarter Highlights
- Century recorded operating profit at San Juan and for the Company as
- All litigation regarding Compania Minera Poderosa was settled.
- The Company reduced its working capital deficiency by $3.9 million,
or 26%, compared to December 2008.
Second Quarter Results
In the second quarter ended June 30, 2008 the company reported an
operating profit from mining operations, before depreciation, amortization and
accretion, of $2,115,901 (2008 - $1,437,174) from gold revenues of $4,347,387
(2008 - $3,121,143). Expenses incurred in the mining operations were
$2,231,486 (2008 - $1,683,969). For the quarter ended June 30, 2009 the
Company reported net income of $1,137,857 or $0.01 per share, compared to net
income of $2,538,817, or $0.01 per share in the prior period. The net income
in the 2008 quarter was solely as a result of the return of the Rosario de
Belen shares to the sellers.
As at June 30, 2009 the Company had a working capital deficiency of
$11,128,404 compared to a working capital deficiency of $14,985,245 at
December 31, 2008, a decrease of 26%. The Company is working diligently to
continue to reduce this deficit.
During the second quarter of 2009 the Company settled all litigation with
respect to the Company's October 2006 binding agreement to acquire an
investment in Compania Minera Poderosa S.A. ("CMPSA"), a Peruvian gold mining
company. Under the terms of the settlement agreement, the Company received (i)
a US$300,000 cash payment and (ii) 260,868 shares of CMPSA in exchange for a
US$300,000 deposit that had been paid by the Company. All litigation brought
by the Company, the sellers, the other buyer and other parties was dismissed.
The Lamaque project is world class and management has been working to
deliver a financing package with terms that are in the best interests of all
of our stakeholders. To this end, the Company has considered a number of
financing offers. The Company is currently in receipt of several equity
financing offers which would supplement the prepaid gold forward term sheet
that the Company is in the process of closing. The Company will continue
negotiations only on those offers that allow the Company to honor its
obligations to its stakeholders. A financing package will also only be
acceptable that allows the existing shareholders to reap the upside benefits
of our estimated six million ounces of gold currently contained in reserves
and resources at Lamaque. Proposals received to date have involved offers of
mergers or business combinations, the sale of a substantial amount of equity,
or some combination thereof.
A special committee of the Board of Directors has been appointed to
review and evaluate the current offers for equity financing. It is expected
that this process will take two weeks to complete.
Margaret Kent, President and CEO of Century commented, "Century is
proceeding with the $45 million financing announced on July 30. Century is
working closely with Union Securities Ltd., and we believe the final closing
of this deal will occur this fall."
Regarding Lamaque, Ms. Kent further commented, "Century recently hosted a
technical review at the Lamaque mine site, which was attended by approximately
35 industry professionals. Due to the success of this event, the Company will
host another presentation and mine tour for industry analysts from major
brokerages in Canada and the U.S. in mid September. The purpose of these
on-site technical reviews is to demonstrate to the mining and financial
communities the exciting results achieved at Lamaque over the past year."
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
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this press
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: firstname.lastname@example.org, Phone: (877) 284-6535 or (360) 332-4653,
Fax: (360) 332-4652, Website: www.centurymining.com