Century Mining Corporation

Century Mining Corporation

August 05, 2011 17:13 ET

Century Announces Private Placement

VAL D'OR, QUÉBEC--(Marketwire - Aug. 5, 2011) - Century Mining Corporation ("Century" or "the Company") (TSX VENTURE:CMM) announced today that it intends to complete a private placement financing of 4,260,000 units (the "Units") of the Company, at a price of $0.25 per Unit, for gross proceeds of $1,065,000. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable for one common share of the Company at $0.45 for 18 months from closing. With respect to a portion of the private placement the Company will pay cash commissions of 6.5% of the gross proceeds and will issue compensation options equal to 6.5% of the number of Units sold. The compensation options will be exercisable for the purchase of Units of the Company for a period of 18 months following the closing date, at an exercise price equal to the private placement price.

The private placement is subject to various conditions including approval by the TSX Venture Exchange. All of the securities which may be issued under this financing are subject to a four-month hold period. The proceeds will be used for working capital purposes.

Further, the Company announces that it has closed the $1 million convertible loan financing that was announced on July 29, 2011.

About Century Mining Corporation

Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

Daniel J. Major, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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