CENTURY MINING ANNOUNCES UP TO C$6 MILLION IN FINANCINGS
Blaine, WA: June 5, 2008 - Century Mining Corporation (CMM: TSX-V) announced that, subject to regulatory approval, it has arranged with a Swiss institution a C$6.0 million financing for its Lamaque Project.
Details of the financing are as follows:
Convertible Debenture Facility for C$1.0 million
- Zero-coupon facility with 12 month maturity.
- Lender has the right to convert the debenture into approximately 5.6 million Units at a price of C$0.18 per Unit within 12 months from issue.
? Each Unit will comprise one Common Share and One-Half of One Common Share Purchase Warrant. Each whole Common Share Purchase Warrant will entitle the holder to purchase an additional Common Share at an exercise price of $0.30 per share for a period of 18 months.
- Finder's fee of 6% to be paid in units.
Bridge Loan Facility for C$5.0 million
- The term of the loan will be the earlier of 24 months or the date that the previously-announced project loan facility with Fortis becomes available for drawdown.
- The loan will bear interest of LIBOR + 6%.
? The loan will be secured by Lamaque milling circuit and other assets at the Sigma Lamaque Complex.
- Draw down conditional on due diligence on the Lamaque Mine and mining operations satisfactory to the lender.
- Finder's fee of 4% of the total facility to be paid in common shares of the company.
The convertible debenture is scheduled to close immediately and draw down of the bridge facility is expected in the near term.
As announced on May 12, 2008 Century is currently negotiating a significant project loan facility with Fortis for up to C$70 million. The financings announced today were arranged to provide Century with sufficient capital to continue production expansion at the Lamaque Mine until the proceeds from the project loan facility are available.
Margaret Kent, President & CEO, commented: "Today's announcement is another important step in Century's plan to expand production at the Lamaque Underground Mine. The financing announced today will provide Century with the additional capital to operate the Lamaque Mine until the operation is cash flow neutral and the Fortis facility can be drawn down."
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'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
Phone: (877) 284-6535 or (360) 332-4653
Fax: (360) 332-4652
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.