ONTARIO Montreal’s RICHMONT MINES and Toronto’s PATRICIA GOLD MINES have entered into an agreement whereby Richmont will acquire all of Patricia Mining’s outstanding shares in a combination stock and cash deal. Patricia shareholders will receive $0.15 in cash and 0.055 of one Richmont share for each Patricia Mining share held.
The total acquisition cost is approximately $17 million, including the assumption by Richmont of Patricia Mining’s approximately $5.8 million liabilities, of which, $3.1 million is currently due to Richmont. The transaction is expected to close in mid-December 2008.
Upon completion of the deal, Richmont will become the sole owner of the Island Gold mine near Wawa. The mine is currently operated as a joint venture: Richmont 55% and Patricia 45%. The Island Gold mine achieved commercial production in October 2007, using the mill built for the former Kremzar gold mine. At the end of last year the mine had proven and probable reserves totalling 1.06 million tonnes grading 8.39 g/t Au. There were also measured and indicted resources of 590,167 tonnes at 10.14 g/t Au and an inferred resource of 613,635 tonnes at 9.80 g/t Au.
Information about the Island Gold mine is available at either www.PatriciaMining.com or www.Richmont-Mines.com. The Richmont site has a lovely photo of visible gold in a quartz vein.