McWatters Mining (MC-T) has completed its $55-million acquisition of Placer Dome’s (PDG-T) operations in Val d’Or, Que., including the Kiena and Sigma gold mines.
McWatters issued to Placer 7.3 million shares (worth about $10 million) and paid $45 million in cash.
The announcement comes on the heels of McWatters’ closing of an $80-million issue consisting of a $50-million equity portion and a $30-million bond linked to the price of gold, as outlined in its prospectus issued in late August (T.N.M., Sept. 8/97).
The issue’s underwriters were Marleau, Lemire Securities, Griffiths McBurney & Partners, CIBC Wood Gundy Securities and Lvesque Beauboin Geoffrion.
McWatters is planning a $23-million development program in the hopes of extending the life of Kiena and Sigma to at least 10 years each.
Some $10 million will be used at Kiena to develop new mineralized zones and build an access ramp between levels 81 (810 metres) and 94 (940 metres).
The remaining $13 million will be spent at Sigma I on delineation drilling in an attempt to increase the mine’s daily production rate, which the firm wants to double to 1,500 tonnes.
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