Century Mining (CMM-V, CMNZF-O) has now signed a prepaid gold forward agreement and equity financing that will allow it to put its Lamaque gold project in Val d’Or, Que. into production in early 2010.
The gold forward agreement is valued at US$33 million and the financing is for $17 million (Canadian).
“The signings of the prepaid gold forward agreement and the equity subscription agreements are major milestones for the company,” said president and CEO Margaret Kent in a statement. “Upon funding, Century will immediately pay the remainder of the $3.5 million financial guarantee requested by the Ministry of Natural Resources of Quebec for the reclamation of the Sigma site.”
The company has also closed the last flow-through equity financing comprising of 20 million units at 20¢ apiece for $4 million. Each unit consists of one share and hone half of a share warrant, exercisable for 18 months at 30¢.
The additional $4 million will allow Century to continue its exploration, development and resource delineation program at Lamaque.
Historically, the Sigma-Lamaque mine produced more than 9.2 million oz. gold. The company also has an 82.6% interest in the San Juan gold mine in Peru. Production there was 14,000 oz. in 2008 and about 63,000 oz. in 2008.
Current reserves at Lamaque are 7.7 million tonnes grading 4.56 grams gold per tonne for 1.13 million oz. gold.