CALGARY, ALBERTA--(Marketwire - Aug. 13, 2012) -
THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Century Energy Ltd ("Century") (TSX VENTURE:CEY) is pleased to announce that further to the previously announced Letter of Intent with Pacific Iron Ore Corporation ("Pacific"), it has entered into a definitive Property Option Agreement ("Agreement") with Pacific for the St. Anthony Gold Mine and adjacent properties of 8,784 hectares located in the Sturgeon Lake Greenstone Belt in the Kenora-Patricia Mining District of Ontario, Canada ("Property"). The Agreement is subject to several conditions, including regulatory approval and completion of a financing by Century to fund the first year work program. Pursuant to the Agreement, the financing must be completed on or before October 31, 2012 or such other date as the parties may agree.
The Agreement provides for three earn-in options under which Century may acquire up to an aggregate of 51% of the Property. The first option requires a payment of $2,000,000 for a 20% interest in the Property. The funds will be used to pay for expenditures on the Property's Phase 1 work program. The second option requires payment of $2,500,000 for an additional 20% interest in the Property. The funds will be used for expenditures on the Property's Phase 2 work program. The third option requires payment of $5,000,000 to acquire a total of 51% of the Property. The exercise of the second and third options by Century is conditional upon exercise of the prior option.
The St. Anthony Gold Mine produced 63,310 ounces of gold in the early part of the twentieth century from 332,720 tons with an average recovered grade of 0.191 ounces of gold per ton.
Century intends to continue to pursue exploration on its oil and gas properties located in Saskatchewan.
This news release may contain certain forward-looking statements, including the proposed private placement, requisite regulatory approvals and the timing for each, all of which involve substantial known and unknown risks and uncertainties, many of which are beyond the Company's control. The Agreement is subject to several conditions and there is no assurance that the conditions thereunder will be met. The earn-in options are at the option of Century and there is no assurance that such option will be exercised even if the conditions for such exercise are met. Such risks and uncertainties include, without limitation, risks associated with mining exploration, development, exploitation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers and producers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility. Century's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds that Century may raise in the proposed private placement. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Century or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Century does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.