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Century Mining Reports That Poderosa Selling Group has Breached Deal to Sell its Interest to the Company
Wednesday November 22, 2:20 pm ET
BLAINE, WASHINGTON--(CCNMatthews - Nov. 22, 2006) - Century Mining Corporation (TSX VENTURE:CMM - News) announces that it has been advised by a person representing the selling group of Compania Minera Poderosa S.A. (CMPSA) that the selling group that holds approximately 38% shares of CMPSA has this morning sold their shares to a third party through the facilities of the Lima Stock Exchange.
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On October 16, 2006 the Company announced that it entered into an agreement with a group of private shareholders to acquire a 38% interest in CMPSA.
The Company and the selling group had arranged to close the transaction today, including disbursement of funds on the US$5.0 million credit facility that the Company had arranged. All necessary regulatory approvals for the transaction had been obtained and all documentation had been completed.
In the opinion of the Company, the Company and the selling group had a binding agreement requiring the selling group to sell its shares to the Company. As recently as yesterday final documentation was being circulated in anticipation of closing the transaction today. The Company is taking the position that the selling group is in violation of this binding agreement, including the exclusivity clauses in the agreement. The Company is reviewing its legal alternatives, which may include an immediate court injunction today to overturn the sale of the shares on the Lima Stock Exchange.
Margaret Kent, President and CEO said: "I am extremely disappointed with this outcome as our management team has worked very hard on this transaction. Although we do not know all the details, and have not been formally advised in writing, our legal team in Peru is aggressively pursuing any remedies available to the Company. I feel personally betrayed by members of the selling group who as recently as yesterday were in communication with me."
Margaret M. Kent, Chairman, President & CEO
Caution Concerning Forward-Looking Information |
