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Richmont Mines increases financing for mine expansion

Richmont Mines is increasing the amount of its previously announced bought deal financing from $30 million to $34 million as it works to accelerate the expansion of its Island Gold Mine in northeastern Ontario.
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Richmont Mines is increasing the amount of its previously announced bought deal financing from $30 million to $34 million as it works to accelerate the expansion of its Island Gold Mine in northeastern Ontario.

Richmont Mines is increasing the amount of its previously announced bought deal financing from $30 million to $34 million as it works to accelerate the expansion of its Island Gold Mine in northeastern Ontario.

Company president-CEO Renaud Adams said 2015 will be a “transformational year” for the Montreal-based miner with big development plans at Island Gold to extend both a main access ramp and a secondary ramp, and complete 41,000 metres of exploration drilling to define new resources and extend the mine life.

A syndicate of underwriters, led by Macquarie Capital Markets Canada Ltd. and including CIBC World Markets Inc., National Bank Financial Inc., BMO Capital Markets, TD Securities Inc., and PI Financial Corp., has agreed to purchase on a bought deal basis 8.5 million common shares of the corporation at a price of 4 per share for gross proceeds of $34 million.

The exploration work at Island Gold, located near Dubreuilville, would unlock 1.1 million ounces of gold potential deeper down.