CENTURY MINING ANNOUNCES TAKEOVER BID FOR SULLIDEN EXPLORATION
Blaine,
WA: November 28, 2007 - Century
Mining Corporation (CMM: TSX-V) announced today
it has issued a takeover bid circular and formally launched its takeover bid
for Sulliden Exploration Inc. The offer expires
on January 30, 2008.
Century is
offering Sulliden shareholders 0.72 of a Century
common share for each Sulliden common share. The
offer represents a premium of 51% over the Sulliden
share price based on the volume-weighted average trading price for the Sulliden shares on the TSX and for the Century shares on
the TSX-V for the 20 trading days prior to the news release announcement of the
bid on October 4, 2007.
Century urges Sulliden
shareholders to recognize the considerable value of this offer. A
successful bid will immediately resolve the litigation over title to the Shahuindo property in northern Peru and unlock the value of Shahuindo to all shareholders. A key legal opinion
produced by the Peruvian law firm Payet, Rey and Cauvi states that without
the acceptance of this bid, the litigation could reasonably continue until
2015. Century hopes that the Sulliden board of
directors will recommend acceptance of this offer to its shareholders.
Regarding Sulliden’s
November 27, 2007 press release, it should be noted that any additional
discovery of gold or other resources on the Shahuindo
property, or any value attributed to such resources will also be subject to the
ongoing litigation between Century and Sulliden.
In addition
to the substantial premium to the recent trading price of Sulliden
and the resolution of the ongoing litigation over title to the Shahuindo property, the combination of Century and Sulliden will also give shareholders an immediate
opportunity to participate in the development of the gold resources at Shahuindo. A successful bid will result in Century’s
operating expertise to be applied to the development of a large gold mine at Shahuindo that would likely 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 and Rosario de
Belen properties in Peru,
and its Lamaque property in northern Quebec.
A combination of Century and Sulliden
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
- 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 today’s offer to acquire Sulliden’s
outstanding common shares, Century has set out its acceptance condition at 50%
plus one of Sulliden common shares on a fully diluted
basis. The Company intends to acquire all of the outstanding shares of Sulliden but intends to proceed with the development of Shahuindo upon acquisition of a controlling position in Sulliden.
By accepting this offer, Sulliden
shareholders will become part of a new Century with a solid foundation of four
operating mines, 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.
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 is 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.
M Partners 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 subsidiary, 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. 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 we welcome discussions
with Sulliden management and its Board of Directors
such that we can begin to focus on generating value together.“
About
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 Lamaque mine in
Qu�bec that historically has 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.
“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
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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
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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
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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
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Century Mining Coroporation:
441
Peace Portal Drive
/ Blaine, WA
98230 / Phone: (360)
332-4653