Century Closes Flow-Through Financing and Receives Working Capital Loan
VAL D'OR, QUEBEC -- (Marketwire) -- 06/13/11 -- Century Mining Corporation ('Century' or the 'Company') (TSX VENTURE: CMM) announced today that it has closed a non-brokered private placement of 4,000,490 flow-through units at a subscription price of $0.38 per flow-through unit for gross proceeds of $1,520,186. Each flow-through unit consisted of one common share issued on a flow-through basis and one-half of one common share purchase warrant. Each whole warrant is exercisable for one common share at $0.58 for 18 months from closing. This financing was originally announced on May 27, 2011 and an increase in the amount of the offering was announced on June 7, 2011. Century paid finder's fees of $62,330 representing 6% of the value of the flow-through units purchased by certain investors introduced to the Company.
All of the securities issued under this private placement are subject to a four-month hold period. The proceeds from this offering will be used for exploration at the Lamaque project and surrounding properties, as well as further geological studies and computer modeling to define additional resources.
Working Capital Loan
To provide immediate working capital for the Lamaque project, Maxim Finskiy, a major shareholder of Century, has personally agreed to advance US$1,000,000 to the Company under an unsecured short-term note bearing interest at 10% per annum. The term of the loan is four months, but repayment will be accelerated upon the closing of any future equity financing of at least US$1,000,000.
About Century Mining Corporation
Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Daniel J. Major, President & CEO
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 including with respect to the intended use of proceeds raised in the private placement. 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 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Century Mining Corporation
Richard B. Meschke
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
rmeschke@centurymining.com
www.centurymining.com
Terre Partners
Joanna Longo
President
(416) 238-1414 (ext 233)
jlongo@terrepartners.com