Richmont Mines is out to raise $27 million to extend the mine life and find gold reserves near its Island Gold Mine in northeastern Ontario.
The gold miner announced May 16 of an agreement with Macquarie Capital Markets Canada as the lead underwriter for the issuance of 2.6 million common shares on a bought-deal basis. The offering is expected to close on or about June 7.
The money is earmarked for its current exploration program at its flagship Island Gold Mine near Dubreuilville in northeastern Ontario “as well as potential organic growth opportunities” nearby.
Island Gold’s 86,500-metre exploration drilling program is based on extending the mine life along strike above the 1,000-metre level and down-dip below the 1,000-metre level.
At the end of the last quarter, 60,000 metres of drilling were complete with the remaining 26,500 metres to be done by the third quarter of this year.
