Shares of Richmont Mines (
) 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,
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
the majority of which will be accounted for in Q4 2012. The
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
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
will be laid off immediately and 35 employees will be retained
this 4 month de-commissioning period.