CENTURY MINING
CORPORATION ANNOUNCES TAKEOVER BID FOR SULLIDEN EXPLORATION INC.
Century Mining Corporation
(“Century” – TSX-V:CMM – October 4, 2007) today announces its
intention to make an all share takeover bid for Sulliden Exploration Inc. (TSX:
SUE) (“Sulliden”).
Century intends to offer Sulliden
shareholders 0.72 of a Century common share for each Sulliden common share. The
offer values Sulliden at CAD$0.41 per common share and represents a premium of
51% based on the volume-weighted average trading price for the previous 20
trading days for the Sulliden shares on the TSX and for the Century shares on
the TSX-V.
Century
hopes that the Board of Sulliden will recognize the considerable value of this
offer to Sulliden shareholders. The value created from the resolution of the
litigation over title to the Shahuindo property cannot be underestimated. A
successful bid will immediately resolve the litigation and unlock the value of
Shahuindo to shareholders of both companies. Century urges the Board of
Sulliden to recommend this offer to its shareholders.
In addition to the substantial premium to the
recent trading price of Sulliden and an immediate resolution of the ongoing
litigation over title to the Shahuindo property, the combination will also give
Sulliden shareholders an immediate opportunity to participate in the
development of the gold resources at Shahuindo. A successful bid will result in
Century’s construction and operating expertise to be applied to the
development of a large operating gold mine at Shahuindo that could be producing
by late 2010. In consolidating positions, Sulliden shareholders will also have
the opportunity to participate in the exploitation of Century’s
substantial gold resources at its San Juan property and its Rosario de Belen
properties in Peru, and its Lamaque property in northern Quebec.
A share
exchange would result in the creation of a pre-emininent mid-tier gold producer
with the following attributes:
- Significantly Increasing Production Growth to Mid-Tier Status
- Combined
Break-Even Cost of Production in 2010 below Median for Intermediate
Producers (as defined by BMO Capital Markets, Weekly Gold Monitor,
September 17, 2007)
- Highly Liquid
Gold Company Trading more than 500,000 shares per day
- Geographically
Diversified in Canada and Peru
- Substantial
Combined Reserves Plus Measured and Indicated Resources and Historical
Resources
In the
formal offer to acquire Sulliden’s outstanding common shares, Century
will set out its acceptance condition at 50.1% of Sulliden’s shares on a
fully diluted basis. The Company intends to acquire all of the outstanding
shares of Sulliden but will proceed with the development of Shahuindo upon
acquisition of a controlling position in Sulliden. It is intended that the
remaining payment obligations on the Shahuindo property will be met through
debt financing.
The
combined company will offer a solid foundation of four operating mines and an
unparalleled pipeline of 10 exploration projects and a leading presence in
Canada and Latin America.� A brief summary of these core assets is as follows:
Lamaque: The Sigma and Lamaque underground mines operated from 1935
through 2000 and produced a combined 9.4 million ounces of gold.� Century
reopened the Lamaque underground mine in April 2007, whereby the Company aims
to achieve a production rate of 100,000 ounces of gold per year by the end of
2008. The Company currently produces 75,000 ounces per year from the Sigma open
pit.
San
Juan:� The San Juan Gold Mine was
acquired by Century in May 2006.� Although gold production in the area dates
back to the Incas, modern mining has been conducted only since the 1970s.� Over
this period, approximately 1.2 million ounces of gold have been mined at San
Juan.� Century plans to increase the capacity of the mill to 700 tonnes per
day, achieving an annualized production rate of 35,000 ounces of gold in 2008.�
Rosario
de Belen:� Mina
Rosario de Belen began operations in February 2007 as an open-pit heap leach
mine with an initial and expandable ore processing capacity of 5,000 tonnes per
day. The mine and processing plant are currently operating at a rate of
approximately 3,000 tonnes of ore per day.� Century intends to expand
production at Rosario de Belen to approximately 25,000 – 30,000 ounces of
gold per year.�
Shahuindo:� Shahuindo is a gold-silver
project located 25 km north of Barrick’s Alto Chicama and 70 km south of
Newmont’s Yanacocha deposits in northern Peru.� The project has been the
subject of extensive drilling and exploration since the 1980s and in 2005,
Met-Chem Canada Inc. produced a technical report which is in accordance with NI
43-101.� Century intends to construct a large heap leach gold operation on
Shahuindo by late 2010.�
The
offer will be subject to a number of customary conditions; however it will be
designed to not trigger the rights provided for under the Sulliden’s
shareholder rights plan.
MPartners Inc. is financial advisor to Century. Century’s Canadian legal
advisor is Lang Michener LLP and its US legal advisor is Theodora Oringher
Miller & Richman PC.
Commenting
on the offer, Margaret Kent, chairman, chief executive officer and president of
Century stated: “We believe the offer provides Sulliden shareholders with
full and fair value for their shares. With the resolution of the litigation
over Shahuindo which has become increasingly more favorable to Century’s
wholly owned Peruvian subisidiary, Algamarca, the offer secures an opportunity
for Sulliden shareholders to benefit from the development of the Shahuindo property.
It further presents the prospect of a tremendous upside to the share price of
the combined company for both Sulliden and Century shareholders.� We have the
view that the proposed transaction will position Century to quickly become an
intermediate gold mining company with a significant reserve and resource base.�
We urge Sulliden shareholders to tender their shares to our offer and would
welcome discussions with Sulliden management and its Board of Directors such
that we can begin to focus on generating value together.“
“Margaret M. Kent”
Chairman, President & CEO
For further investor information, please
contact:
Brent Jones, Manager of Investor Relations
E-mail: bjones@centurymining.com
Phone: (877) 284-6535 or (360) 332-4653
Fax: (360) 332-4652
Website: www.centurymining.com
For media relations, please contact:
Deborah Thompson, President, DT
Communications
E-mail: deborah@dt-communications.com
Phone : 416-918-9551 or
416-867-2306
Fax : (416) 365-0414
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 Sigma and Lamaque mines in Qu�bec that historically
have 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 subsidiaries have also recently
acquired Rosario de Belen where it accounts for 100% of both gold and silver
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.
The
TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of the contents of this press 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.
Century Mining Coroporation: 441 Peace Portal
Drive / Blaine, WA
98230 / Phone: (360)
332-4653
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