CMM gets investor and $12 Million cash.
wegamining.com
Wega Mining invests in Century
May 15 2007
Oslo, Norway – Wega Mining ASA (“Wega Mining” – OAXX: WEMI) and Century Mining Corporation jointly announced today that Wega Mining has made an equity investment of $12,000,000 in the Canadian listed company Century Mining Corporation (“Century” – TSX-V:CMM). Under the terms of the transaction, Wega Mining acquired 13,483,146 units at a purchase price of $0.89 per unit. Each unit consists of one common share and one quarter of one common share purchase warrant. The share purchase warrants will entitle the holder to acquire one Century common share at a price of $1.17 per share at any time on or before May 10, 2009.
In accordance with TSX Venture Exchange regulations, the issued shares are subject to a four month hold period. Resale of the shares is restricted until September 10, 2007.
After the transaction, Wega Mining owns 19,301,646 shares in Century, representing 14.1% of the issued and outstanding Century common shares. Upon exercise of the warrants, Wega Mining would own 22,672,322 common shares, representing 14.4% on a fully diluted basis.
During a period beginning May 10, 2008 and ending at the warrants’ expiry date, Century may require the warrant holder to exercise its warrants, provided the value of Century shares exceed CAD 1.25 for 20 consecutive trading days.
Wega Mining has acquired the Century securities for investment purposes. Wega Mining’s investment will be reviewed on a continuing basis and its holdings may be increased or decreased in the future.
The companies have also agreed that, until May 10, 2009, Wega Mining will not increase its direct and indirect share of outstanding shares in Century above 19.9% without the approval of the Board of Directors of Century.
Lars Marius Furu, CEO of Wega Mining said: “We are pleased to make this arrangement with Century Mining. Century’s current operations are making good progress and there is considerable value to unlock. We are also excited about the company’s growth opportunities in Peru, for which the main proceeds from this placement will be used.”
Margaret Kent, President and CEO of Century Mining, said, “We are pleased to have Wega Mining as a significant shareholder. The relationship will give Century increased exposure to the European mining community, new institutional investors and sources of capital to increase shareholder value. We also plan to visit Norway for a road show in June as part of the company’s ongoing investor relations activities.
For further information please contact:
Lars Marius Furu, CEO
Wega Mining ASA
T: +47 9018 8289 |
