TORONTO – Richmont Mines has closed a bought deal financing of $2.6 million common shares for gross proceeds of $27 million or $10.40 per share. The shares were taken up by a syndicate led by Macquarie Capital Markets Canada.
The underwriters have been granted an over-allotment of up to an additional 390,000 common shares exercisable over 30 days from the closing, expected to be June 7, 2016, of the offering. A further $4 million might be raised.
Richmont plans to use the net proceeds of the offering to expand the current exploration program at its Island Gold mine near Wawa, ON. The company has repeated reported substantial assays from both lateral and deep drilling at the mine. Reserves at the end of 2015 contained an estimated 561,700 oz of gold, roughly double the number of a year earlier. The majority of the increase came from drilling below 400 metres.
Details of the recent drilling programs are available at www.Richmont-Mines.com.