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| Friday, May 14, 2010 |
Press Release |
Century Mining Announces 2009 Year End Financial Statements
- Company applies for reinstatement of trading and reschedules annual meeting -
Century Mining Corporation ("Century" or the "Company") (TSX-V: CMM) is pleased to present its 2009 Year End Financial Statements and Management's Discussion and Analysis for the period ended December 31, 2009. The Company is now fully financed, and has recently restarted gold production at its Lamaque gold mine in Val d'Or, Qu�bec, Canada.
- On December 31, 2009, the Company completed a series of debt and equity financings totaling approximately $60.75 million through a private placement with private strategic investors and a prepaid gold forward facility with Deutsche Bank AG. Please refer to the release dated January 4th, 2010 for full details on the financing.
- Subsequent to year end, the Company commenced the re-opening of the Lamaque mine complex, which was previously put on care and maintenance in July 2008. The Lamaque gold mine commenced gold production in April, and is expected to produce approximately 45,000 ounces in 2010 and 90,000 ounces in 2011 at a life of mine cash cost of US$450 to $550 per ounce.
- Subsequent to year end, the Company completed a total 1,625 meters of exploration and delineation drilling during the month of February 2010 on the Bedard Dyke zone at the Lamaque mine complex.
- Subsequent to year end the Company significantly reduced its debt position through cash and share payments to various debtors, including issuance of shares to retire the MRI Trading note.
Century recorded corporate administration expenses in 2009 of $3,495,105, up from $2,222,450 in 2008, mostly due to extra management fees related to the completion of the aforementioned $60.75 million financing.
Century's detailed financial statements and Management's Discussion and Analysis have been filed today, and may be viewed on the SEDAR website at www.sedar.com.
Outlook for the full year 2010
Century has fully implemented the re-opening of the Lamaque gold mine in Val d'Or, Qu�bec, and has commenced initiatives to expand and modernize its San Juan gold mine in Peru. The Company is fully financed for all capital programs and has strengthened its balance sheet and is focused on its Lamaque project start-up for the second quarter of 2010. The Lamaque gold project will have a mine life in excess of 10 years, producing an average of 105,000 ounces of gold per year at a cash cost of US$450 to $550 per ounce.
In Peru, the Company will continue to work on the continued expansion and modernization of its San Juan gold mine to fully anchor the Company's growth of its Peruvian business unit. The San Juan operation continues to generate positive cash flow that will allow further exploration, development and expansion of its Peruvian land holdings.
Corporately, the Company plans to expand production to approximately 55,000 to 60,000 ounces in 2010, 115,000 ounces in 2011, and 120,000 in 2012. Additionally, in the second quarter of 2010, the Company will commence a 45,000+ meter underground Diamond drill program at the Lamaque mine complex and also look to commence a detailed exploration program later in 2010 at its San Juan project. Both properties contain multiple priority targets and untested zones that have the potential to significantly add new zones and additional resources. The Lamaque property has indicated, from recent drilling over the past couple of years, the opportunity to identify completely new zones of mineralization similar to the historic mineralized areas in the Sigma and Lamaque mines. The San Juan project has the opportunity to create a major mining district based on the results of previous exploration work.
The Company is well positioned to grow in market value as management pursues new opportunities, particularly in Qu�bec and Peru, with an emphasis on the acquisition of low-cost producing gold mines and assets that generate cash flow or that can be returned to profitability in the near term.
Margaret M. Kent, President & CEO, commented, "We are glad to have the December 31, 2009 financial statements and audit completed. The Audit Committee and management apologize for the fact that the audit took longer than expected. The financings closed at year end, the 2009 debt settlements and the expansion and development activities in Peru all contributed to the complexity of the financial statements and the audit. Normally audit planning begins before year end, but with the financings not closed until year end, the audit planning process could not be commenced in a timely fashion. Management and the Audit Committee worked diligently with the auditors to meet the reporting deadline, but we were unable to do so. We are applying immediately for reinstatement of trading and we will do everything we can, in order to get the Company's shares trading again as soon as possible."
Application for Reinstatement of Trading
The Company is submitting immediately the documents for reinstatement of trading of the Company's shares as soon as possible on the TSX Venture Exchange.
Annual Shareholders Meeting
The Company's Annual General Meeting of shareholders which had been set for early June has been rescheduled for 10:00 a.m. Pacific Time, Friday, June 11, 2010 in Vancouver in the UBC Room at the Vancouver Club, 915 West Hastings Street, Vancouver, British Columbia, Canada.
Conference call
Management will host a conference call on Wednesday, June 2 at 11:00 a.m. Pacific time (2:00 p.m. Eastern time) to discuss 2009 results and future developments at its operations in Qu�bec and Peru. Mining analysts, investors and the media are invited to dial toll-free 1-800-369-2128 in Canada and the United States, or 1-630-395-0029 from international locations (normal toll rates do apply) and state the verbal passcode "CenturyMining". Please dial approximately 5 minutes before the start of management's presentation. The presentation will be followed by a question and answer period.
The conference call will be archived for later playback and may be accessed by dialing 1-888-294-0358 or 1-402-220-9749 and entering the pass code 1324#, or via www.centurymining.com via a downloadable audio file. The archived playback will be available until June 25, 2010 11:59 p.m. Pacific Time.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
"Margaret M. Kent"
President & CEO
For further investor information, please contact:
Peter A. Ball, Director of Investor Relations
E-mail: pball@centurymining.com
Phone: (360) 332-4653
Toll Free: (877) 284-6535
Website: www.centurymining.com
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.
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.
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