BLAINE, WA, June 5 /CNW/ - Century Mining Corporation (CMM: TSX-V) today
announced that, subject to regulatory approval, it has arranged with a Swiss
institution a C$6.0 million financing for its Lamaque Project.
Details of the financing are as follows:
Convertible Debenture Facility for C$1.0 million
- Zero-coupon facility with 12 month maturity.
- Lender has the right to convert the debenture into approximately
5.6 million Units at a price of C$0.18 per Unit within 12 months from
- Each Unit will comprise one Common Share and One-Half of One Common
Share Purchase Warrant. Each whole Common Share Purchase Warrant will
entitle the holder to purchase an additional Common Share at an
exercise price of $0.30 per share for a period of 18 months.
- Finder's fee of 6% to be paid in units.
Bridge Loan Facility for C$5.0 million
- The term of the loan will be the earlier of 24 months or the date that
the previously-announced project loan facility with Fortis becomes
available for drawdown.
- The loan will bear interest of LIBOR + 6%.
- The loan will be secured by Lamaque milling circuit and other assets
at the Sigma Lamaque Complex.
- Draw down conditional on due diligence on the Lamaque Mine and mining
operations satisfactory to the lender.
- Finder's fee of 4% of the total facility to be paid in common shares
of the company.
The convertible debenture is scheduled to close immediately and draw down
of the bridge facility is expected in the near term.
As announced on May 12, 2008 Century is currently negotiating a
significant project loan facility with Fortis for up to C$70 million. The
financings announced today were arranged to provide Century with sufficient
capital to continue production expansion at the Lamaque Mine until the
proceeds from the project loan facility are available.
Margaret Kent, President & CEO, commented: "Today's announcement is
another important step in Century's plan to expand production at the Lamaque
Underground Mine. The financing announced today will provide Century with the
additional capital to operate the Lamaque Mine until the operation is cash
flow neutral and the Fortis facility can be drawn down."
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'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: 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