Century Mining Corporation

Century Mining Corporation

April 06, 2006 09:51 ET

Century Announces Non-Brokered Private Placement of up to C$25.0 Million

BLAINE, WASHINGTON--(CCNMatthews - April 6, 2006) - Century Mining Corporation (TSX VENTURE:CMM) announces a non-brokered private placement of units raising up to C$25.0 million. Each unit is priced at $1.25 and consists of one share plus one-half share purchase warrant exercisable at $2.00 for a period of 24 months. Warrants will become exercisable within 10 days if the 20-day weighted average closing share price exceeds $2.25. The shares will be subject to restrictions on resale for four months. A large portion of the placement will be taken down by a significant resource institution.

A finder's fee of 1.5% in cash and 1.5% in broker's warrants will be paid.

Proceeds of the unit offering will be used for the acquisition of the new mining equipment for the Company's Sigma open pit mine; exploration and development of the Company's Lamaque underground mine; the repurchase and settlement of the outstanding precious metal royalty agreement over the Company's Sigma-Lamaque property, which is currently held by SGF Mines Inc.; for the cash consideration for the San Juan Gold Mine acquisition; and for general corporate working capital purposes.

Century and Investissement Quebec (IQ) have agreed that Century will satisfy its March 31, 2006 quarterly interest payment owing to IQ by issuing common shares of Century, subject to regulatory approval. Century will issue 221,875 common shares in satisfaction of the March 31st interest payment of $266,249.56 owing to IQ. The shares will be subject to restrictions on resale for four months. The Company has elected at this time not to settle the outstanding IQ debt as previously mentioned in a press release.

Margaret Kent, President & CEO, commented: "This private placement allows us to implement our growth plans for the Company. The working capital will allow us to streamline our operations at Sigma, commence the aggressive development plan for Lamaque and develop the San Juan Project. We are pleased that we have been able to attract the attention of the long term focused institutional investors that have confidence in our business strategy and our capability to build another major mining company."

About Century Mining Corporation

Founded in 2003, Century Mining Corporation is the newest Canadian gold producer. The Company owns the Sigma-Lamaque Complex, where gold production of 90,000 ounces is forecast for 2006 at a cash cost of US$325 an ounce. The Company recently announced the purchase of the San Juan Gold Mine and associated exploration properties in Peru.

Margaret M. Kent, Chairman, President & CEO

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and as amended in Section 27E of the 1934 Act.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

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