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Friday, 31st March 2006 (4059 views)

Canadian-based mining company Century have announced they will be purchasing 60 per cent controlling interests in San Juan Gold Mines and Minera Chorunga.

Both Peruvian firms will remain part owned by the long-serving existing labour force, which will retain the other 40 per cent share of the mine.

Current production levels at the mine are estimated at 12,000 ounces of gold per year, although during the 1980s the operation was producing up to 36,000 ounces.

As part of the purchase, Century will take on nearly $10 million-worth of debt from San Juan and Minera Chorunga and will pay off any unsecured debts or liabilities the subsidiaries currently have.

Margaret M. Kent, the chairman, president and CEO of Century, said: "This asset acquisition is possible because of our management team's substantial insolvency and restructuring experience."

"Properly capitalized, the property will produce a significant amount of gold from the existing underground vein operation," Ms Kent continued. "We believe with the injection of exploration funds in the area San Juan can become a major gold producer."

The San Juan operation is located 50 miles inland from the southern Peruvian coast, in the region of the city of Arequipa, and Century claims several areas around the current mine site have the potential for discovery of further gold reserves.

 

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