QUEBEC McWATTERS MINING plans to sell its closed Sigma-Lamaque gold mining complex near Val-d’Or to a division of CENTURY MINING CORP. of Ferndale, Wash. Cost of the transaction is $25.9 million including cash, shares and debt assumption. The transaction is scheduled to close on July 7, 2004.
McWatters acquired the Sigma and Lamaque gold mines in 1997. A buyer had been sought since McWatters filed for bankruptcy protection in January 2004.
The chairman, president and CEO of Century Mining is Margaret Kent, a.k.a. Peggy Witte of Royal Oak Mines. She said in a press release, "With our past mining experience in the Timmins camp and mining challenging orebodies at Colomac and Hope Brook, we are confident that our team has properly assessed the potential of the Sigma and Lamaque deposits. This acquisition will provide the foundation to establish Century as a mid-tier gold producer. We look forward to working in Val d’Or, Que., and to become [sic] a significant mining company in the historic Abitibi Gold Belt."
Century plans to restart operations in the fall of 2004. A rate of at least 100,000 oz of gold per year at a cash cost of under US$290/oz is anticipated. The company has said it believes the exploration potential of the Sigma-Lamaque properties is "in excess of 4 million oz of gold." The company has a web site at www.CenturyMining.com.