Century Mining Corp. (CMM.V) announced that it has signed an indicative non-binding term sheet with Kirkland Intertrade Corp. and Gravity Ltd. for a C$20 million private placement and the acquisition by Century of an interest in Etruscan Resources Inc. The Private Placement will be for 100 million units of Century to be issued at a price of C$0.20 per Unit.
The company said that it will use proceeds from the Private Placement to fund the initial development and operation of the Lamaque Mine and provide working capital to the Company, alleviating the Company's working capital deficit.
Kirkland and Gravity or "Investor" are controlled by Russian investor Maxim Finskiy and American investor Fran Scola, respectively, who have agreed to work with Century management to build the Company into a significant gold producer.
Following closing of the transactions, and including its previous share purchase, the Investor will own 167.99 million common shares of Century representing approximately 45.8% of Century's issued and outstanding shares. Upon completion of all the transactions, Century will own about 16.6% of the outstanding shares of Etruscan.
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