Century Mining Corporation Message Board

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Gold/Mining/Energy : Century Mining Corporation

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To: baystock who wrote (487)	6/26/2008 8:16:37 PM
From: hubris33	Read Replies (1) of 545

Hey baystock, did you see the wording in the Annual Report? Some pretty scary stuff there: The Company intends to replace this bridge debt facility with a senior debt facility that will allow the expansion to continue. Without this bridge debt facility the Lamaque mine will not continue to operate. The current shortfall will be funded from a bridge debt facility that will reduce the working capital deficit and allow the Company time to complete the legal documents and due diligence to draw on a senior debt facility. The Company is currently working with a potential lender of such a facility; however, there can be no assurance that the Company will obtain this financing. That and the larger working capital deficit and current liabilities of $23.5 Million sure add some credence to the company's statement that CMM is in a "distressed financial condition." I think Wega could see in advance that CMM is on the verge of bankruptcy and has been selling at any price in order to get something for its 20+ Million shares. I wouldn't count on the closing of the debt financing as being a savior for CMM as long as present management is at the helm. This group has not hit many production targets and there is no indication that they can start doing it now. Also, Kent clearly can not manage cash, has no idea how to do cash flow projections and still has a shopping streak in her. No way to insure that the funds if raised, get spent where they should be or will have the effects intended. Then, as a nearly bankrupt company, one has to wonder what kind of terms CMM can get on any potential financial deal? So I think any debt deal just pushes the uncertainty off into the future and it adds some substantial risk. Good luck to you! H3

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