BLAINE, WA, Nov. 18 /CNW/ - Century Mining Corporation (CMM: TSX-V) today announced that, subject to regulatory approval, it has closed the second tranche of the flow-through equity financing, comprising 13.5 million flow-through shares at a price of $0.20 per share for gross proceeds of $2.7 million, which was originally announced on October 14, 2009. In connection with the second tranche, the Company paid a cash finder's fee of 4% of gross proceeds and issued broker warrants equal to 4% of the number of flow through shares issued. Each broker warrant is exercisable for 18 months from the date of issue and entitles the holder to purchase one common share of the Company for a price of $0.20 per share.
On November 2, 2009 the Company announced that, subject to regulatory approval, it had closed the first tranche of the flow-through equity financing by issuing approximately 6.5 million flow-through shares at a price of $0.20 per share for gross proceeds of approximately $1.3 million. The Company paid a cash finder's fee of 7% of gross proceeds and issued broker warrants equal to 7% of the number of flow-through shares issued in the first tranche of the financing. Each broker warrant is exercisable for 18 months from the date of issue and entitles the holder to purchase one common share of the Company for a price of $0.20 per share.
In aggregate, the Company issued a total of 19,998,074 flow-through shares at a price of $0.20 per share for total gross proceeds of $3,999,615 in both tranches of the financing. Total gross proceeds were reduced from $5.25 million originally contemplated and announced on October 14, 2009. All of the securities issued under these private placements will be subject to a four-month hold period.
"We are very pleased to have completed this additional tranche of financing. It will allow the Company to continue its exploration and resource delineation efforts for the Lamaque project," said Margaret Kent, President and CEO of Century Mining Corporation.
In addition, the Company is continuing to progress with preparations for completion of the C$21 million equity private placement and the US$33 million prepaid gold forward sale financing discussed in the November 2, 2009 press release, including the shareholders meeting scheduled for Monday, November 23, 2009. Closing of these financings, which will fund the restart of the Lamaque project in Val-d'Or, Quebec, is currently expected in early December 2009. A portion of the proceeds will be used to pay the remaining C$3.2 million financial guarantee requested by the Ministry of Natural Resources of Quebec for the final reclamation of the Sigma-Lamaque site after completion of mining.
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's 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.
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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 conditional nature of the above transactions, 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 most recent annual and quarterly Management's Discussion and Analysis, 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: Century Mining Corporation, Phone: (877) 284-6535 or (360) 332-4653, Fax: (360) 332-4652, Website: www.centurymining.com