CENTURY
MINING PROVIDES UPDATE ON PODEROSA LITIGATION STATUS
- Injunction on sale of Poderosa shares still
in effect –
Century Mining
Corporation (“Century” – TSX-V:CMM – June 5, 2007) is pleased to provide an update on
the Poderosa litigation in Peru.
�The defendants to the breach of contract claim Century Mining filed in Peru
on May 15, 2007 failed to appear at the mediation hearing held on May 29, 2007.
�As a result, this matter will now proceed to trial, where Century is seeking
damages totaling US$85 million.
Century’s claim is
based on the improper sale of approximately 37% of the issued shares of
Compania Minera La Poderosa S.A. (CMPSA) to Compania Minera San Manuel S.A,
(San Manuel), a subsidiary of Compania Minera Atacocha S.A. �This sale
constituted a breach of a contract between the defendants and Century Mining
signed October 12, 2006.
The following defendants
were parties to the contract with Century and in breach thereof sold their
Poderosa shares to San Manuel:
• M�nica
Patricia Arias Vargas De Ucelli
• Ver�nica
Roci�o Arias Vargas de Gomero
• White Peak
Resources, Inc.
• Koriarias, Inc.
The following defendants
were involved in the transaction or related to the above former shareholders:
• Luz
Evangelina Arias Vargas De Sologuren
• Compania
Minera Poderosa S.A.
• Compania
Minera Atacocha S.A.
•
Corporaci�n Minera San Manuel S.A.
• Ana
Carolina Arias Vargas de Picasso and Jose Enrique Juan Picasso Salinas
In addition, Century
Mining succeeded in maintaining the injunction on the transfer of all CMPSA
shares currently held by Minera San Manuel whose total shareholding of CMPSA
now represents 51% of the issued capital of CMPSA.
Margaret Kent, President
and CEO commented, “Given the defendants’ failure to appear at the
mediation hearing, we are well-positioned to succeed at trial as we demonstrate
the breach of contract by the defendants. We maintained good faith in our
negotiations with the selling group from the beginning of the negotiation
process and we are now pursuing this legal action to protect the interests of
our shareholders.”
Regards,
Sara Swisher
Century Mining Corporation
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 information within the meaning of applicable securities
laws. We use words such as “may”, “will”,
“should”, “anticipate”, “plan”,
“expect”, “believe”, “estimate” and similar
terminology to identify forward-looking information. It is 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 information involves 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 accordingly, readers
should not place undue reliance on those statements. 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 resource 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 and in other
filings made by us with Canadian securities regulatory authorities and
available at www.sedar.com.
Century Mining
Coroporation: 441 Peace Portal Drive / Blaine,
WA 98230
/ Phone: (360) 332-4653
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