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Gold/Mining/Energy : Century Mining Corporation -- Ignore unavailable to you. Want to Upgrade?

To: John McCarthy who wrote (69)	5/10/2006 9:11:49 AM
From: tanoose	Respond to of 545

Century Mining agreement for San Juan gold mine Century Mining Corp (C:CMM) Shares Issued 107,275,375 Last Close 5/9/2006 $1.68 Tuesday May 09 2006 - Property Agreement The TSX Venture Exchange has accepted for filing a letter agreement dated March 1, 2006, between Century Mining Corp. and Yolanda Esther Quiroga Castillo de Laumer, whereby the company agrees to acquire 60 per cent of the outstanding shares of each of San Juan Gold Mines S.A.A. and Minas Chorunga S.A.A., corporations existing under the laws of Peru and which own the San Juan gold mine and related mineral concessions in Peru. In consideration, the company will pay $4.5-million (U.S.) cash and issue one million common shares. © 2006 Canjex Publishing Ltd. tanoose

To: John McCarthy who wrote (69)	5/10/2006 9:40:37 AM
From: pstad60	Read Replies (2) \| Respond to of 545

John. I agree, some people doth protest too much ? Probably just a newer investor doing his/her research and looking at the negative aspects. Pretty simple to understand why the company has raised operating cost guidance. Sigma Lamaque is in Quebec, Canada. They have a 5 year labour agreement so the labour costs are a known factor, and there is about 3 1/2 years left in that agreement. So lets get a base line on cash costs in Canadian dollars. Over on the Stockhouse forum I suggested we keep an eye on Canadian prices, as opposed to US dollar prices due to the fluctuations in the exchange rate, a long time ago. A company issues cash cost guidance for US$325/oz. Operations are all in Canada. USD/CDN exchange rate was around $1.18 or ~$0.845 . US$325 x $1.18 = CDN$383.50 So $383 cash costs in Canadian Dollars, but then the USD tanks,... or Canadian Dollar rises,.... now up to $1.10 or ~$0.9075 CDN$383.50 x $0.91 = US$348.98 Pretty basic math ? As for the rest of the poster's observations,.... The company has indeed had to re-issue news releases regarding their Reserve and Resource estimates, to comply with NI 43 101 regulations. There are numerous examples of this still occurring with alot of resource companies. It's not as regular an occurrence as it was a couple years ago in the industry, but it still happens. As for the retraction of the long tern debt settlement. We've been through that already, the original deal was set for $8 million cash and 5 million shares,..... when the share price was around $0.60ish. (LT debt is about $14.5 million and then take into consideration the 20% discount which would bring the pay out cost to around $11.8 million) Share price ran up very quickly and according to my questioning of IR regarding this issue, the deal wasn't finalized and was cancelled. The company has until the end of December 2006 to pay off the entire debt and accrued interest if they want to take advantage of the 20% discount agreed to in the initial purchase agreement. Wouldn't it be much better to pay off the long term debt with terms such as a $2.50 share price and issue say 3 million shares and pay $4 million cash ? Less dilutive and less cash outlay .... yes ? no ? Hopefully the share price gets up to what i consider a more reasonable valuation soon, and they can get the long term debt cleared off the books with the hoped for higher share price. A debt free balance sheet sure would look nice ?