McWatters exits Kiena

McWatters Mining (MWA-T) has agreed to sell the balance of its Kiena mine royalties to Wesdome Gold Mines (WDG-V) for $2.2 million, including the assumption of $700,000 in debt.

Wesdome acquired the Kiena complex in Val d’Or, Que., in early January for $3 million. The deal saw McWatters retain a 4% net smelter return royalty on existing resources and a 2% royalty on any new resources found on the property. In early April, McWatters agreed to convert those royalties into a 2.5% royalty on all resources to be processed from Kiena.

In exchange, Wesdome forked over $700,000 in cash and agreed to pay McWatters $1.50 per tonne to process up to 5 million tonnes of ore from any source at Kiena’s mill, with the rate falling to $1 per tonne thereafter. The rate under the new deal is $1 per tonne.

McWatters also recently agreed to sell its Sigma-Lamaque gold mine complex in the Val d’Or camp to Century Mining (CMM-V) for $25.9 million in a bid to emerge from bankruptcy protection.

The Toronto Stock Exchange recently suspended the company’s shares and gold-linked convertible unsecured debentures for failure to meet listing requirements.