Century Mining Corporation

Century Mining Corporation

November 12, 2010 09:00 ET

Century Mining Announces C$5.0 Million Private Placement Financing

BLAINE, WASHINGTON--(Marketwire - Nov. 12, 2010) -


Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that the Company has entered into an agreement with a syndicate of agents co-led by Haywood Securities Inc. and Byron Capital Markets, and including Union Securities Ltd. (collectively, the "Agents") pursuant to which the Agents have agreed to offer for sale, on a best efforts private placement basis, up to 12,820,513 units of the Company (the "Units") at a price per Unit of C$0.39 (the "Unit Price") for gross proceeds to the Company of up to C$5,000,000 (the "Offering"). Each Unit will consist of one common share in the capital of the Company (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share for a period of 18 months following the closing of the Offering at an exercise price of C$0.60 per Common Share.

The Company has granted the Agents an option, exercisable in whole or in part at any time up to the closing of the Offering, to offer for sale up to an additional 5,128,206 Units at the Unit Price for additional gross proceeds to the Company of up to C$2,000,000.

The Company intends to use the net proceeds of the Offering to advance the Lamaque gold mine in Val d'Or, Québec through the final commissioning stages of the operation. The proceeds will assist in funding the underground development of the Lamaque Flats, the Bedard Dyke and the North Wall ore production zones. Currently the mine is producing at approximately 1,000 tonnes per day (TPD), and with the commencement of mining in the North Wall zone in Q1/2011, daily production is expected to increase to approximately 1,500 TPD and reach a final steady state production rate of 2,100 TPD by Q4/2011. The 2011 production guidance remains intact at 80,000 to 90,000 ounces gold, is forecasted to become cash flow positive in Q1/2011, and to reach commercial production in the first half of 2011.

The Company has agreed to pay the Agents a cash commission equal to 6.5% of the gross proceeds raised in connection with the Offering and to issue compensation options entitling the Agents to purchase such number of Units that is equal to 6.5% of the aggregate number of Units sold pursuant to the Offering, at an exercise price equal to the Unit Price, for a period of 18 months following the closing of the Offering.

The Offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.

The securities being offered hereby have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or province in which such offer, solicitation or sale would be unlawful.

About Century Mining Corporation

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

On behalf of Century Mining Corporation,

Keith Hulley, Interim CEO

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.

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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