ONTARIO – Richmont Mines of Montreal has signed a definitive agreement to acquire the outstanding 31% ownership of four patented claim on the Island Gold mine property, thereby increasing its ownership of the claims to 100%. Richmont will acquire the 31% ownership in return for a 3% net smelter royalty payable on all of the mineral production from the four claims.
Elaine Ellingham, interim president and CEO of Richmont, commented: "Consolidating Richmont's ownership to 100% of the Island Gold mine property is an important step and clears the path for us to accelerate our mine development. With a million ounce gold resource at depth, our cornerstone Island Gold mine is an asset that we believe has significant potential to transition into a long life, high grade and lower-cost operation."
Separately, Richmont reported on its Q2 2014 performance. The company sold 27,790 oz of gold during the period at an average price of US$1,282. Cash costs per ounce also fell in the first six months of this year to US$898 from US$1149 in 2013. Revenues in Q2 2014 were C$38.95 million, compared to C$17.84 million in the same period a year earlier.
Please see www.Richmont-Mines.com for detailed information about Island Gold and the company's other operating mines.
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