Century Iron Mines to initiate automatic purchase plan under normal course issuer bid

Century Iron Mines Corp (TSE:FER) said Monday that it plans to start an automatic purchase plan under its previously announced normal course issuer bid. 

In late August, the iron ore miner said it intends to purchase, through the facilties of the Toronto Stock Exchange, a number of its oustanding common shares. 

The bid was authorized by the board to allow Century Iron to purchase shares "if in the opinion of its management the purchases can be made on terms which will enhance the value of its remaining shares," Century said in an earlier statement. 

Monday, the company said it plans to start an automatic purchase plan under the bid beginning on September 12, to enable purchases to continue this way without the control or influence of the company, while it is in a trading blackout. 

The number of shares to be purchased during the period of the bid from August 22, 2012 to August 21, 2013 will not exceed 500,000 shares, or roughly 0.5 per cent of the issued and outstanding common shares. 

As at August 15, there were 94, 864,071 common shares issued and outstanding in Century Iron, the company said. 

All purchases made under the normal course issuer bid will be made through the facilities of the TSX, and common shares purchased will be cancelled.             

The company has not purchased any of its common shares within the past 12 months.                  

Late last month, Century Ironsaw its shares pop after releasing an updated resource estimate for its Duncan Lake iron project.

The company on August 27 unveiled an updated NI 43-101 resource estimate for the Duncan Lake iron project in Quebec, noting an increase in total resources of 89 per cent.

Century also reported that the updated estimate increased the average grade for measured, indicated and inferred resources.

Century is a joint venture partner with Augyva Mining Resources Inc. (CVE:AUV) on the Duncan Lake project, and since the last resource estimate in 2010, the company has drilled an additional 44,007 metres of core in 125 drill holes. 

In the newest estimate, using a 16-per-cent iron cutoff, Century said Duncan Lake contains a defined 1.05 billion tonnes of measured and indicated at a grade of 24.4 per cent iron, compared to a previously reported 31.3 million tonnes at a grade of 23.7 per cent iron in 2010. 

Additionally, inferred resources are now estimated at 563 million tonnes grading 24.7 per cent iron, compared to a previously reported 821 million tonnes at a grade of 24.6 per cent iron.

Century Iron Mines is Canada's largest holder of iron ore land claims, with interests in Quebec and Newfoundland and Labrador. 

Along with the Duncan Lake project, the company currently has the option to acquire up to a 60-per-cent interest in the Attikamagen project under an option and joint venture agreement with Champion Minerals Inc. (TSE:CHM).

Century also wholly owns the Sunny Lake project and the Astray, Grenville, Menihek and Schefferville projects recently acquired fromAltius Minerals Corp. (TSE:ALS).