Richmont Mines raised $31 million in gross proceeds to extend the mine life of its Island Gold Mine in northeastern Ontario, and scout around for new reserves.
The gold miner announced June 7 that the corporation had issued 2,990,000 common shares on a bought-deal basis with underwriter Macquarie Capital Markets Canada.
The company said the net proceeds are earmarked for an aggressive exploration program at its cornerstone gold mine near Dubreuilville “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.