Century withdraws Sulliden offer (January 28, 2008)

Century Mining (CMM-V, EXSDF-O) has withdrawn its offer for Sulliden Exploration> (SUE-T, EXSDF-O), which would have expired on Jan. 31.

Earlier in the month, Sulliden advised its shareholders to reject Century’s offer because management had doubts about Century’s financial well-being and the reliability of its technical assessments.

Century has disagreed with all of Sulliden’s accusations and says it is disappointed that Sulliden could not see any benefits in merging the two companies.

Sulliden felt that it would be of better value to its shareholders to try to develop its Shahuindo gold-silver property in Peru itself.

The two companies have been facing off in the Peruvian courts over the Shahuindo for about five years, contesting which company is the rightful title holder of the property.

The property has an indicated resource of 38 million tonnes grading 0.95 gram gold per tonne and 22.99 grams silver, or 1.2 million oz. gold and 28 million oz. silver.The inferred resource is 17.2 million tonnes grading 0.62 gram gold per tonne and 12.83 grams silver, or 342,000 oz. gold and 7 million oz. silver.

Sulliden bought the property for $4.13 million from Companhia Minera Algamarca in 2002.

But then Century bought Algamarca shortly afterwards, which was then under new management, and launched a lawsuit declaring the property transfer invalid.

The litigation will continue as neither company is willing to back down.

In early January, the Supreme Court of Peru ruled that a decision made by the Civil Court of Cajamarca that was in favour of Century was not made by the appropriate court. The Supreme Court said that the Superior Court of Lima was where the case should have been tried.

Sulliden plans to issue a rights offering so that it can continue to fund the legal dispute and continue its exploration program.

In 2007, Sulliden drilled about 3,700 metres, extending known mineralization by 1.3 km.

This year Sulliden would like do some infill drilling to upgrade the resource for the Main zone so the company can move to the feasibility stage.

Century shares slid 2 to 38 each on a trading volume of more than 67,000 shares, while Sulliden shares rose 1.5 to 28 each on a trading volume of about 63,000 shares.