UPDATE: Richmont Mines Down 25%, Earlier Fell To 52-Week Low; Closes Quebec Gold Mine

By MidnightTrader.com Staff,

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Shares of Richmont Mines ( RIC ) are down 24.6% at $2.88 after earlier setting a new 52-week low of $2.78 after the company announced the immediate closure of Francoeur Mine and the suspension of exploration activities on the Wasamac gold property. Both assets are located near Rouyn-Noranda, Quebec, Canada.

RIC will take a pre-tax write-off of approximately CAD 11 mln - CAD 13 mln, or

about $11.08 mln - $13.09 mln, related to the closure of the Francoeur Mine,

the majority of which will be accounted for in Q4 2012. The write-off will

consist of $4 mln - $5 mln in cash, related to employee severance, with the

remaining amount being non-cash.

The company said that it could not find a solution to "make the the project

economically feasible at present or over the long-term."

Commercial gold production at Francoeur will cease on Nov. 30, 2012, and the

closure process will take about 4 months to be completed. About 115 employees

will be laid off immediately and 35 employees will be retained temporarily for

this 4 month de-commissioning period.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: RIC

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