Century Mining calls criminal charges against exec in Peru 'desperate smear'
Wed Jun 13, 6:42 PM
By Craig Wong
VANCOUVER (CP) - Century Mining Corp. (TSXV: CMM.V) says one of its senior executives is facing criminal charges recently levied by a rival company in Peru that is challenging Century's recent purchase of a gold project in the South American country.
Century said late Wednesday its unnamed executive faces charges pressed by Sulliden Exploration Inc. (TSX: SUE.TO) for signing agreements this spring to buy Minera Algamarca S.A. and Exploraciones Algamarca S.A., two companies that owned the Shahuindo gold project.
Century said the charges reflect "desperate measures" it claims are "designed to distract Sulliden shareholders from the weakness of Sulliden's legal position in the ongoing dispute concerning title to the Shahuindo property."
Blaine, Wash.-based Century, which is run by former Royal Oak Mines CEO Margaret Kent and trades on the TSX Venture Exchange, said in May it had bought 100 per cent of the Shahuindo gold project in northern Peru for US$31 million.
"We believe this to be another desperate smear tactic by Sulliden whose case to win Shahuindo is weak and fading," CEO Kent said in a release.
"Century's intention is to build a mine at Shahuindo; Sulliden appears focused only on launching warfare in the courts."
Montreal-based Sulliden's rights to the property are in dispute and the subject of extensive litigation in Peru.
Sulliden said it bought the property from Compania Minera Algamarca SA in 2002, but that the company's new shareholders claim that the sale agreement is invalid. Algamarca, which was acquired by Attimsa, took legal action in Peru.
Century Mining acquired the Shahuindo gold project in May as well as an option to buy the mining concessions and surface rights surrounding Shahuindo, called the Atimmsa project, for US$21 million.
Century said at the time that after a thorough legal review of the disputed title to the Shahuindo project, the company and its advisers believe the companies it is buying are the rightful owners of the properties and associated surface rights.
Century said it has also taken the additional steps necessary to acquire the surrounding mining concessions and surface rights to be well-positioned to further develop the project. As part of the transaction, the selling group will continue to manage the ongoing litigation in the Peruvian court system.
Sulliden did not issue any statement Wednesday on the dispute. But in a release May 30, Sulliden reported "continued success and progress" in its legal battle over the Shahuindo prospect, saying two different courts had dismissed challenges against the company's ownership of the project and the Peruvian Supreme Court had upheld an appeal by the Montreal miner.
"These recent victories further support Sulliden's opinion that the Shahuindo legal dispute will be resolved in Sulliden's favour," the company said.
Sulliden, a junior miner, has exploration and mine development interests in Ontario, Quebec and Peru.
Founded in 2003, Century Mining owns the Sigma-Lamaque complex in Val d'Or, Que., the dormant Carolin gold mine in southwestern British Columbia and precious metals exploration projects in the Alaska Juneau gold belt. In Peru, Century owns an 82.6 per cent interest in the San Juan Mine and recently bought the Rosario de Belen gold and silver mine.
When it acquired the project, Century Mining said the Shahuindo mine could be operating as early as the fourth quarter of 2009, with gold equivalent production of 125,000 to 150,000 ounces of gold a year.
In trading on the TSX on Thursday, Century shares fell three cents to 81 cents, a drop of 3.6 per cent. Sulliden stock fell half a cent to 49 cents.
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