Century Announces Amended Forward Gold Purchase Agreement Now in Effect and Appointment of Chairman
VAL D'OR, QUEBEC -- (Marketwire) -- 08/15/11 -- Century Mining Corporation ('Century' or the 'Company') (TSX VENTURE: CMM) announces that the amended and restated forward gold purchase agreement (the 'Amended and Restated Forward Agreement') with Deutsche Bank AG, London Branch ('DB') dated July 22, 2011 (the entering into of which was announced in the Company's press release dated July 25, 2011) has become effective as of August 14, 2011.
Century and DB have entered into a letter agreement in which, among other things, DB has waived and consented to specific breaches by Century under the original forward gold purchase agreement (the 'Original Forward Agreement') entered into between the parties in December 2009, and which letter agreement amends certain provisions in the Amended and Restated Forward Agreement and confirms the effectiveness of the Amended and Restated Forward Agreement as of August 14, 2011. As set out in the letter agreement, the effectiveness of the Amended and Restated Forward Agreement is conditional upon, among other things, the parties entering into a further revised Amended and Restated Forward Agreement by August 31, 2011.
Under the Original Forward Agreement, Century agreed to make scheduled monthly gold deliveries, including delivery of 667 ounces per month during 2011, for which it had received prepayment in 2009. Under the terms of the Amended and Restated Forward Agreement, DB has agreed to amend Century's scheduled delivery obligations with respect to the months of June, July, and August 2011 (the 'Affected Delivery Periods'), allowing Century to receive the spot market price of gold at the time of the delivery for the required delivery of 667 ounces for each of the Affected Delivery Periods. As a result, Century has become indebted to DB in the amount of US$3.25 million (the 'Loan Amount'). The repayment terms of the Loan Amount, including the terms of DB's right to convert all or a portion of the Loan Amount into Century common shares, are described in the Company's press release dated July 25, 2011.
Chair Appointment
In addition, Century announces that effective August 14, 2011, Ricardo M. Campoy, the lead director of the Company, has been appointed Chairman of the Company.
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
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
(416) 238-1414 (ext 233)
jlongo@terrepartners.com