TORONTO (miningweekly.com) – Embattled junior Century Mining, which Russian-owned White Tiger Gold proposed to buy in March, said it had stopped milling at its Juan gold mine in Peru, because the government believes the tailings facilities were not properly permitted.

The TSX V-listed company’s stock fell by 11% on the news.

Century in February had to stop production at its Lamaque project in Quebec because of a broken down crusher.

“This has been a difficult quarter for Century, with the Lamaque crusher breakdown causing significant downtime and throwing the project's development schedule back several weeks,” CEO Daniel Major said in a statement.

White Tiger, which listed on the TSX in December, agreed to buy Century in a deal where shareholders will receive 0,4 of a White Tiger share for each Century share they own, and will end up with about 61% of the combined company.

Major had conceeded that Century was in desperate need of cash at the time of the deal's announcement.

Russian tycoon Maxim Finskiy owns control of White Tiger and has a minority holding in Century.

Century said it produced 10 198 oz of gold in the first quarter, despite higher tonnages milled, as grades slid from the previous quarter’s levels.

Its shares closed at C$0,395.