StockIgloo

VAL D'OR, QUEBEC–(Marketwire – Sept. 27, 2011) – Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that it has repaid the US$3.25 million short-term loan extended by Deutsche Bank AG, London Branch ("DB") to the Company earlier this year, inclusive of principal and interest. This loan was convertible into Century common shares at the option of DB if it had not been repaid by the Company. The funds used for the repayment were obtained from a drawdown of the Performance Reserve Account, as permitted by the Second Amended and Restated Forward Gold Purchase Agreement signed by Century and DB effective September 9, 2011.

                 About Century Mining Corporation

Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

Daniel J. Major, President & CEO

FOR FURTHER INFORMATION PLEASE CONTACT: Richard B. Meschke
Century Mining Corporation
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
http://www.centurymining.com
ORJoanna Longo
Terre Partners
President
(416) 238-1414 (ext 233)

thizsukz said:

Can someone help me clarify this statement "The funds used for the repayment were obtained from a drawdown of the Performance Reserve Account"?   Does anybody know what the performance reserve account is? 

I believe the PR is referring to the DB escrow performance account whereby they are allowed to borrow funds if they hit certain performance goals like TPD or solid annualized production  between SJ and Lamaque.  I think they need to achieve 70,000 ounces (as a rate) to access the funds.  

Not sure if they are referring to the performance B account (which is the requirement of 70,000 annualized rate of production over 4 months).  Seems unlikely since we do not have the TPD or grades to justify it.

Probably was money left over in escrow from the first hurdle to pay down pay the 3.25$ mil loan.  

Relic can definitely answer this, but you can check it out yourself in the quarterly or annual financial statements, just look under the deferred revenue policy notes.