Injunction on sale of Poderosa shares still in effect -
BLAINE, WASHINGTON--(CCNMatthews - June 5, 2007) -
Century Mining Corporation -
(TSX VENTURE:CMM) is pleased to provide an update on the Poderosa litigation in Peru.
The defendants to the breach of contract claim
Century Mining
filed in Peru on May 15, 2007 failed to appear at
the mediation hearing held on May 29, 2007.
As a result, this matter will now proceed to trial,
where Century is seeking damages totaling US$85 million.
Century's claim
is based on the improper sale of approximately 37% of
the issued shares of Compania Minera La Poderosa S.A.
(CMPSA) to Compania Minera San Manuel S.A. (San Manuel),
a subsidiary of Compania Minera Atacocha S.A.
This sale constituted a breach of a contract between
the defendants and Century Mining
signed October 12, 2006.
The following defendants were parties to the contract with Century and in breach thereof sold their Poderosa shares to
San Manuel:
- Monica Patricia Arias Vargas De Ucelli
- Veronica Rociio Arias Vargas de Gomero
- White Peak Resources, Inc.
- Koriarias, Inc.
The following defendants were involved in the transaction or related to the above former shareholders:
- Luz Evangelina Arias Vargas De Sologuren
- Compania Minera Poderosa S.A.
- Compania Minera Atacocha S.A.
- Corporacion Minera San Manuel S.A.
- Ana Carolina Arias Vargas de Picasso
and Jose Enrique Juan Picasso Salinas
In addition, Century Mining succeeded in maintaining the injunction on the transfer of all CMPSA shares currently held by Minera San Manuel whose total shareholding of CMPSA now represents 51% of the issued capital of CMPSA.
Margaret Kent, President and CEO, commented, "Given the defendants' failure to appear at the mediation hearing, we are well-positioned to succeed at trial as we demonstrate the breach of contract by the defendants. We maintained good faith in our negotiations with the selling group from the beginning of the negotiation process and we are now pursuing this legal action to protect the interests of our shareholders."
On behalf of the Board of Directors,
Margaret M. Kent, Chairman, President and C.E.O.
FOR FURTHER INFORMATION PLEASE CONTACT:
Century Mining Corporation
Brent Jones
Manager, Investor Relations
(360) 332-4653
(360) 332-4652 (FAX)
Email: bjones@centurymining.com
Website: www.centurymining.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Source: CCN Matthews (June 5, 2007 - 5:30 PM EDT)
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