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Century reports second quarter 2009 financial results

^{Published on 2009-08-28 16:30:20 - Market Wire}
 

 BLAINE, WA, Aug. 28 /CNW/ - Century Mining Corporation (CMM: TSX-V) is pleased to announce its financial and operating results for the second quarter ended June 30, 2009. Second Quarter Highlights ------------------------- - Century recorded operating profit at San Juan and for the Company as a whole. - All litigation regarding Compania Minera Poderosa was settled. - The Company reduced its working capital deficiency by $3.9 million, or 26%, compared to December 2008. Second Quarter Results ---------------------- In the second quarter ended June 30, 2008 the company reported an operating profit from mining operations, before depreciation, amortization and accretion, of $2,115,901 (2008 - $1,437,174) from gold revenues of $4,347,387 (2008 - $3,121,143). Expenses incurred in the mining operations were $2,231,486 (2008 - $1,683,969). For the quarter ended June 30, 2009 the Company reported net income of $1,137,857 or $0.01 per share, compared to net income of $2,538,817, or $0.01 per share in the prior period. The net income in the 2008 quarter was solely as a result of the return of the Rosario de Belen shares to the sellers. As at June 30, 2009 the Company had a working capital deficiency of $11,128,404 compared to a working capital deficiency of $14,985,245 at December 31, 2008, a decrease of 26%. The Company is working diligently to continue to reduce this deficit. During the second quarter of 2009 the Company settled all litigation with respect to the Company's October 2006 binding agreement to acquire an investment in Compania Minera Poderosa S.A. ("CMPSA"), a Peruvian gold mining company. Under the terms of the settlement agreement, the Company received (i) a US$300,000 cash payment and (ii) 260,868 shares of CMPSA in exchange for a US$300,000 deposit that had been paid by the Company. All litigation brought by the Company, the sellers, the other buyer and other parties was dismissed. The Lamaque project is world class and management has been working to deliver a financing package with terms that are in the best interests of all of our stakeholders. To this end, the Company has considered a number of financing offers. The Company is currently in receipt of several equity financing offers which would supplement the prepaid gold forward term sheet that the Company is in the process of closing. The Company will continue negotiations only on those offers that allow the Company to honor its obligations to its stakeholders. A financing package will also only be acceptable that allows the existing shareholders to reap the upside benefits of our estimated six million ounces of gold currently contained in reserves and resources at Lamaque. Proposals received to date have involved offers of mergers or business combinations, the sale of a substantial amount of equity, or some combination thereof. A special committee of the Board of Directors has been appointed to review and evaluate the current offers for equity financing. It is expected that this process will take two weeks to complete. Margaret Kent, President and CEO of Century commented, "Century is proceeding with the $45 million financing announced on July 30. Century is working closely with Union Securities Ltd., and we believe the final closing of this deal will occur this fall." Regarding Lamaque, Ms. Kent further commented, "Century recently hosted a technical review at the Lamaque mine site, which was attended by approximately 35 industry professionals. Due to the success of this event, the Company will host another presentation and mine tour for industry analysts from major brokerages in Canada and the U.S. in mid September. The purpose of these on-site technical reviews is to demonstrate to the mining and financial communities the exciting results achieved at Lamaque over the past year." About Century Mining Corporation Century Mining Corporation is a junior gold producer. The Company owns and is working towards the start up of the Lamaque mine in Québec that historically has produced over 9.2 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. Total gold production for 2007 and 2008 was 63,124 and 14,252 ounces of gold, respectively. "Margaret M. Kent" Chairman, President & CEO 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.

For further information: 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 ]