Century Mining announces takeover bid for Sulliden Exploration

    BLAINE, WA, Nov. 28 /CNW/ - Century Mining Corporation (CMM: TSX-V)
announced today it has issued a takeover bid circular and formally launched
its takeover bid for Sulliden Exploration Inc. The offer expires on
January 30, 2008.
    Century is offering Sulliden shareholders 0.72 of a Century common share
for each Sulliden common share. The offer represents a premium of 51% over the
Sulliden share price based on the volume-weighted average trading price for
the Sulliden shares on the TSX and for the Century shares on the TSX-V for the
20 trading days prior to the news release announcement of the bid on
October 4, 2007.
    Century urges Sulliden shareholders to recognize the considerable value
of this offer. A successful bid will immediately resolve the litigation over
title to the Shahuindo property in northern Peru and unlock the value of
Shahuindo to all shareholders. A key legal opinion produced by the Peruvian
law firm Payet, Rey and Cauvi states that without the acceptance of this bid,
the litigation could reasonably continue until 2015. Century hopes that the
Sulliden board of directors will recommend acceptance of this offer to its
    Regarding Sulliden's November 27, 2007 press release, it should be noted
that any additional discovery of gold or other resources on the Shahuindo
property, or any value attributed to such resources will also be subject to
the ongoing litigation between Century and Sulliden.
    In addition to the substantial premium to the recent trading price of
Sulliden and the resolution of the ongoing litigation over title to the
Shahuindo property, the combination of Century and Sulliden will also give
shareholders an immediate opportunity to participate in the development of the
gold resources at Shahuindo. A successful bid will result in Century's
operating expertise to be applied to the development of a large gold mine at
Shahuindo that would likely be producing by late 2010. In consolidating
positions, Sulliden shareholders will also have the opportunity to participate
in the exploitation of Century's substantial gold resources at its San Juan
and Rosario de Belen properties in Peru, and its Lamaque property in northern

    A combination of Century and Sulliden would result in the creation of a
pre-emininent mid-tier gold producer with the following attributes:

    -   Significantly Increasing Production Growth to Mid-Tier Status

    -   Highly Liquid Gold Company Trading more than 500,000 shares per day

    -   Geographically Diversified in Canada and Peru

    -   Substantial Combined Reserves Plus Measured and Indicated Resources
        and Historical Resources

    In today's offer to acquire Sulliden's outstanding common shares, Century
has set out its acceptance condition at 50% plus one of Sulliden common shares
on a fully diluted basis. The Company intends to acquire all of the
outstanding shares of Sulliden but intends to proceed with the development of
Shahuindo upon acquisition of a controlling position in Sulliden.
    By accepting this offer, Sulliden shareholders will become part of a new
Century with a solid foundation of four operating mines, an unparalleled
pipeline of 10 exploration projects and a leading presence in Canada and Latin
America. A brief summary of these core assets is as follows:

    Lamaque: The Sigma and Lamaque underground mines operated from 1935
through 2000 and produced a combined 9.4 million ounces of gold. Century
reopened the Lamaque underground mine in April 2007, whereby the Company aims
to achieve a production rate of 100,000 ounces of gold per year by the end of

    San Juan: The San Juan Gold Mine was acquired by Century in May 2006.
Although gold production in the area dates back to the Incas, modern mining
has been conducted only since the 1970s. Over this period, approximately
1.2 million ounces of gold have been mined at San Juan. Century plans to
increase the capacity of the mill to 700 tonnes per day, achieving an
annualized production rate of 35,000 ounces of gold in 2008.

    Rosario de Belen: Mina Rosario de Belen began operations in February 2007
as an open-pit heap leach mine with an initial and expandable ore processing
capacity of 5,000 tonnes per day. The mine and processing plant are currently
operating at a rate of approximately 3,000 tonnes of ore per day. Century
intends to expand production at Rosario de Belen to approximately 25,000
- 30,000 ounces of gold per year.

    Shahuindo: Shahuindo is a gold-silver project located 25 km north of
Barrick's Alto Chicama and 70 km south of Newmont's Yanacocha deposits in
northern Peru. The project has been the subject of extensive drilling and
exploration since the 1980s and in 2005, Met-Chem Canada Inc. produced a
technical report which is in accordance with NI 43-101. Century intends to
construct a large heap leach gold operation on Shahuindo by late 2010.

    The offer is be subject to a number of customary conditions; however it
will be designed to not trigger the rights provided for under the Sulliden's
shareholder rights plan.
    M Partners Inc. is financial advisor to Century. Century's Canadian legal
advisor is Lang Michener LLP and its US legal advisor is Theodora Oringher
Miller & Richman PC.
    Commenting on the offer, Margaret Kent, chairman, chief executive officer
and president of Century stated: "We believe the offer provides Sulliden
shareholders with full and fair value for their shares. With the resolution of
the litigation over Shahuindo which has become increasingly more favorable to
Century's wholly owned Peruvian subsidiary, Algamarca, the offer secures an
opportunity for Sulliden shareholders to benefit from the development of the
Shahuindo property. It further presents the prospect of a tremendous upside to
the share price of the combined company for both Sulliden and Century
shareholders. The proposed transaction will position Century to quickly become
an intermediate gold mining company with a significant reserve and resource
base. We urge Sulliden shareholders to tender their shares to our offer and we
welcome discussions with Sulliden management and its Board of Directors such
that we can begin to focus on generating value together."

    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. 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. Century subsidiaries have also recently
acquired Rosario de Belen where it accounts for 100% of both gold and silver
production. Century's growth strategy is to acquire gold producing assets in
South America that will substantially reduce the Company's consolidated total
cash cost of production and where there is exceptional exploration potential
to expand production at these mines.

    "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: For further investor information, please
contact: 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; For media relations, please contact:
Deborah Thompson, President, DT Communications, E-mail:
deborah@dt-communications.com, Phone: (416) 918-9551 or (416) 867-2306, Fax:
(416) 365-0414

Organization Profile


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