Centurion Gold (CGHI) buyout/buyup? [bewildering release?]
[ What/who is buying? First this says: "... management and board of directors intend to purchase ... up to 5 million ... on the open market ... for their personal holdings." Later it says "We have accepted an offer to be bought out at $.60 a share from a company that brings a tremendous amount of synergy for Centurion and the ability to raise capital for new projects." It does not name the acquiring company, but it's apparently Minmet PLC (MNT.L) on the London AIM. What's going on? It's down from over US$3 in 2004 to US$0.22 now. Centurion has or had gold properties in Mali and Gabon, among other places. FL ]
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Press Release
Source: Centurion Gold Holdings, Inc.
Management and Board of Directors Announce Their Intention to Buy up to 5 Million Shares of Centurion Gold Holdings
Thursday September 15, 6:00 am ET
JOHANNESBURG, South Africa--(BUSINESS WIRE)--Sept. 15, 2005--Centurion Gold Holdings, Inc. (OTCBB:CGHI - News), the only South African junior gold mining company publicly listed in the U.S., announced today that the management and board of directors intend to purchase up to 5 million shares of Centurion Gold Holdings' stock in the open market. The management and board of directors' decision to purchase additional shares for their personal holdings is based on the fact that they do not feel the value of Centurion Gold is fully reflected in the price of the stock.
"We have built a solid company through the acquisition of several properties that have a considerable amount of gold, platinum, chrome, and tin, with an estimated value in excess of $5 billion. We have accepted an offer to be bought out at $.60 a share from a company that brings a tremendous amount of synergy for Centurion and the ability to raise capital for new projects. The board of directors and I are excited about the future opportunities for Centurion Gold and feel that the value of the Company's mineral resources is not being recognized in the marketplace and are, therefore, taking this opportunity to increase our personal holdings in Centurion Gold," commented Dale Paul, CEO and Chairman of Centurion Gold Holdings, Inc.
About Centurion Gold Holdings, Inc.:
Centurion Gold Holdings is the only South African junior gold mining company publicly listed in the United States. The Company is executing a roll-up strategy acquiring proven mineral assets, "growth through acquisition"; these assets consist of near-revenue-stream and existing low-cost production operations with turnaround opportunities. Based in South Africa, the Company is ideally suited to exploit new legislation implemented by the government in May 2004. This legislation enforces a "use it or lose it" strategy, whereby all mining claims must be prospected within a designated time frame; otherwise, such prospects revert to the state, thereby creating never-before-seen opportunities, particularly for smaller companies like Centurion. The Company has built a strong team of experienced management and operations mining professionals to exploit these opportunities, and is positioning itself to become a major producer by continually implementing its "growth through acquisition" strategy.
Forward-Looking Statements:
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release the Company will appropriately inform the public.
Contact:
MCC Financial Services
U.S.:
Leslie Richardson, 310-453-4667 x239
ir@mccglobal.com
or
U.K. and Europe:
Carrie Howes, +44 (0) 207 408 5406
ir@mccglobal.com
Source: Centurion Gold Holdings, Inc.
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