Novel gold-backed financing by Century Mining

on February 02 2009 5:04 AM

Century Mining Corp (CMM.V) said it will sell a structured gold-based financing, raising up to $66 million, to fund the development of its Lamaque mine in Quebec and to pay down short- and long-term liabilities.

The company said it will sell 15,000 units, each unit consisting of 600 common shares, 1,000 purchase warrants and 5 troy ounces of gold. Each unit will be priced at $4,400.

The Canada-based gold producer, which said it would raise the money from institutional investors, added that it will repay the loan over a period of five years with physical gold produced from the Lamaque mine.

Shares of the company were trading almost flat at 7 Canadian cents in morning trade on the TSX Venture Exchange. (Reporting by Richa Dubey in Bangalore; Editing by Himani Sarkar)

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