Century Extends Maturity Of Its Outstanding Long Term Debt To Match The Life Of Its Lamaque Underground Mine
Thursday, November 1st, 2007
Century Mining Corporation announces that it has extended the final maturity of its long term debt obligation with Investissement Quebec (â€œIQâ€) until December 2023. The parties have also agreed that interest charges for the remainder of 2007 will be capitalized. IQ has also agreed to defer all principal payments for the fiscal years of 2007 and 2008 while the Company ramps up production at its Lamaque underground operations. Century Mining has agreed to an interest rate of IQ-prime plus 150 basis points through 2008. Beginning in January 2009, the interest rate will float to a level consistent with that of a company rated B+ based on the Reuters rating scale.
Margaret Kent, President and CEO, said, â€œWe are pleased to continue our positive long-term relationship with IQ. The Companyâ€™s geological studies of the Lamaque underground project demonstrate that at current gold prices the Lamaque mine should continue operations for another 15 years. The extension of our debt arrangement to coincide with the expected life of the Lamaque mine is part of Centuryâ€™s ongoing efforts to maintain a healthy financial position for future growth.â€