MONTREAL, Quebec McWATTERS MINING announced last week that it filed notices of intention to make a proposal under the Bankruptcy and Insolvency Act for itself and other members of its group in order to receive protection from their creditors pending the filing of a proposal to the creditors.
Investissement Quebec, a secured creditor of McWatters, has asked the Superior Court of Quebec to issue an order appointing Raymond Chabot Inc. as interim receiver of McWatters, and McWatters has consented. Subject to the terms of the court order, the board and management of McWatters will remain in place and continue to carry out their duties. McWatters also announced that it has engaged Prime Capital Finance of Australia to find an investor interested in acquiring either a full or a partial interest in its Sigma-Lamaque open pit gold mine and mill. McWatters will also examine all other possible alternatives that may allow operations at its Sigma-Lamaque open pit to resume.
Earlier this month, Wesdome Gold Mines paid $3 million to purchase McWatters' closed Kiena gold mine and mill near Val d'Or, Que.