Century Mining Granted Injunction by Peruvian Court on Litigation Related to Compania Minera Poderosa S.A.
Thursday March 15, 4:04 pm ET
BLAINE, WASHINGTON--(CCNMatthews - March 15, 2007) - Century Mining Corporation (TSX VENTURE:CMM - News) announces developments in the legal actions the Company has filed against Corporacion Minera San Manuel S.A., (a subsidiary of Compania Minera Atacocha S.A.), Compania Minera Poderosa S.A. (CMPSA), a group of CMPSA shareholders (the selling group), and others in relation to the selling group's November 2006 breach of their agreement to sell approximately 38% of the outstanding shares of CMPSA to Century for approximately US$45.7 million. Century believes that CMPSA and its other major shareholders interfered with Century's agreement with the selling group, which sold its shares to Corporacion Minera San Manuel S.A.
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On January 24, 2007 Century filed a civil lawsuit in the Third Civil Court - Commercial of Lima, Peru demanding nullification of the transaction between the selling group (Monica Arias Vargas De Ucelli; Veronica Rocio Arias Vargas De Gamero; White Peak Resources, Inc.; Koriarias Inc. and Alberto Arias Davila) and Corporacion Minera San Manuel S.A., and requiring the selling group to complete their obligation to sell the shares to Century.
In ruling on this action on March 9, 2007, the Third Civil Court - Commercial of Lima, Peru issued an injunction freezing approximately 51% of the shares of CMPSA acquired by Corporacion Minera San Manuel S.A., from the selling group and others, and prohibiting the trading of such shares. This injunction has now been enforced through notifications to the Bolsa de Valores de Lima (the Lima Stock Exchange), Cavali (the Peruvian electronic share registration system) and CONASEV (the Peruvian securities regulation ministry). Century has posted the necessary bond required by the court to enforce the injunction.
Century has also initiated the court-required conciliation process with respect to Century's claim for US$85.0 million in damages resulting from the breach of the binding agreement. In addition, Century has filed criminal complaints against the selling group, the buyers and others as allowed by Peruvian law with respect to the fraudulent sale of the CMPSA shares to Corporacion Minera San Manuel S.A. Criminal investigations by the prosecutor and the police are currently underway.
Margaret Kent, President and CEO of Century Mining, said, "I regret having to take this action against people with whom we have dealt in good faith, but the injunction clearly reflects the merit of our claim. Century will vigorously pursue all legal actions."
About Century Mining Corporation
Century Mining Corporation is an emerging mid-tier gold producer that is aggressively acquiring producing mines and exploration properties in Peru. The Company owns and produces gold at the Sigma and Lamaque mines in Quebec that historically have produced over 9.4 million ounces of gold. In Peru, Century acquired control of the San Juan Mine where the Company accounts for 100% of gold production. Century's growth strategy is to acquire gold producing assets in South America that will substantially reduce the Company's consolidated total cash cost of production and where there is exceptional exploration potential to expand production at these mines.
Margaret M. Kent, Chairman, President & C.E.O. |
