Centurion Gold

To build credibility among investors and funds sources for newly public Centurion Gold Holdings (CGHI), South Africa-based small mining company, the only South African small-cap gold firm traded on a U.S. exchange. Originally, CGHI’s goal was to establish its presence in the investment community and create a favorable atmosphere in the media for its acquisition program and its expertise. In pursuit of this goal, Stern & Co. produced regular announcements of corporate progress in earnings, acquisitions and fund raising from institutions and banks in a series of press releases, keeping them informed of the company’s successes.

But then a crisis management requirement arose when CGHI canceled a deal to acquire certain mining assets from Sub-Nigel, another South African gold miner. Sub-Nigel claimed to the Johannesburg press, before the news was properly disseminated, that Centurion could not finalize the deal. Stern & Co. secured placements in Dow Jones and Bloomberg of Centurion’s press release explaining that CGHI had terminated the acquisition because Sub-Nigel had not deliver the promised documentation of the mine’s assets.

Additionally, we succeeded in having CGHI CEO Arthur Johnson’s comments on why the merger failed included in a SmartMoney story, “The Return of the Goldbugs.” In the article, Johnson was also successfully positioned as an expert in the gold mining industry.