Century Mining Corporation has restarted its milling operation at the San Juan gold mine in Peru. Gold milling had been suspended two weeks ago after the suspension order was given by the Peruvian Government. The suspension had been ordered as the government was concerned about the permission and construction of the tailings areas for the company.
The order of closure for the mill was withdrawn by the Osinergmin on last Friday i.e. April 8, 2010. The Osinergmin is the agency for Peru’s Ministry of Mines. The order had been petitioned against by Century Mining saying that the operation at San Juan met the requirement of its government permit and relevant engineering standards.
Daniel Major the president and chief executive of Century Mining said that they were glad that the Osinergmin issue resolved without extended downtime of the San Juan milling operation. Century Mining owns 82.6 percent stake in the San Juan property through two of its subsidiaries. It is expanding the gold production to pay the carrying costs. The company had bought the property in 2006.
Century Mining stockholders are also to vote for an all stock takeover by White Tiger Gold in the month of May. If the transaction goes through White Tiger shareholders would own 39% of the new company and Century Mining shareholders would own 61%. Although it would be the majority of White Tiger directors who would make up the board of the new merged company that would be formed.