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Also from another site,

As posted on the Century Mining blog:

http://www.stockigloo.com/



I think the cash injection via warrants is necessary. I think it replaces the C$9.0 million that they are unable to pull out of the escrow/performance account at this time.

The gross revenue from Lamaque gold sales should be sufficient at this time to fund operating costs. The Finskiy cash injection is necessary to fund development of the Bedard Dyke and the North Wall (in absence of the escrow cash).

I have firmly believed all along that the Finskiy warrants has always been targeted as contingency cash during development (in case the C$9.0 escrow cash was not available in time). I think they even hinted at this in the Management Information Circular (Oct. 29`09 on SEDAR, pg 7):

``If following the Closing, the Company requires additional working capital to fund the development and operation of the Project, the Investor will provide the Company with all or part of such additional working capital through the exercise of the Warrants or by way of private placement for such number of Common Shares at a price to be agreed between the parties in the context of the market at such time, up to a limit of Cdn$15,000,000.``

I think the timeframe to access the C$9.0 million was unachievable all along. They would have needed to do 1,000 - 1,100 tpd for 4 consecutive months at Lamaque starting in March - that would have meant overachieving with every single thing, and with absolutely not start up delays.

I think the escrow timeframe was just the best they were able to negotiate with Deuthsche Bank. They couldn`t negotiate any further as Y/E was approaching and they had to close the deal.

I think Finskiy and Century were fully aware that they had to execute the contingency plan (of cash injection from Finskiey via warrants).

I also think that they were able to get Deuthsche Bank to feel comfortable also. I think the inclusion of Finskiy and Scola was the key to making Deuthsche Bank comfortable about the start up and the funding situation. I think this is why we (as least I) don`t see a specific near-term (drop dead) start up date as part of the Deuthsche Bank prepaid gold sales agreement (just as long as Deuthsche Bank continues to receive their minimum monthly gold ounces from either Lamaque or San Juan or both). I think Deuthsche Bank felt comfortable enough that Finskiy and Scola had deep enough pockets or access/connections to large pools cash that their investment in Century Mining would have minimum risk.

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