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Press Release Source: PATRICIA MINING CORP.
Richmont Mines to Invest $1.0 Million in Patricia Mining and be Granted Option for a 55% Interest in Island Gold Project
Thursday July 17, 10:37 am ET
TORONTO, ONTARIO--Patricia Mining Corp. (Patricia) is pleased to announce that it has signed a letter of intent whereby Richmont Mines Inc. (Richmont) will invest $1.0 million, by way of a private placement, in common shares of Patricia at $0.50 cents per share. With their investment, Richmont will have an option to earn a 55% undivided joint venture interest in Patricia's Island Gold Project by placing the project into production or by expending $10 million on the project. After vesting, and if further financing is required, Richmont agrees to provide additional financing to the joint venture up to a maximum of $10 million. The final agreement is expected to be completed within 30 days and will be subject to a number of conditions including board and regulatory approval and completion of a minimum of $2.5 million of flow-through funding.
The purpose of the financing will be to fund an exploration program in order to assess the quantity and quality of the resources at the Island/Lochalsh zones as well as provide working capital to Patricia. Patricia recently announced that it had engaged Dundee Securities Corporation as financial advisor to assist the management of the corporation to finance the program.
The exploration program is expected to be completed within 12 months and will include surface drilling, dewatering of the existing Lochalsh ramp, underground drilling, and both lateral and vertical underground development. The planned underground program has the objective of defining an underground resource at the Island/Lochalsh zone that will enable a decision to be made on recommencing gold production at the existing mill on the property.
Patricia's Island Gold Project, located 125 kilometers southeast of Hemlo, Ontario has a modern fully permitted, 650 tonne per day mill and related mining infrastructure on the site, with access ramps to several zones of mineralization. A resource calculation by Patricia has outlined a significant high-grade Inferred Resource of 2,034,000 tonnes at 8.3 g/t (0.24 opt) at a 5 g/t cut-off for a total of 544,000 ounces of gold. This is part of the larger bulk tonnage Inferred Resource of 20.6 million tonnes, grading 2.35 g/t (0.07 oz/ton) gold for a total of 1,559,000 ounces of gold contained at a cut-off grade of 0.75g/t gold. (See press release dated November 12, 2002 for disclosure required under NI43-101). In light of the recent rise in gold prices, the company is advancing the opportunity for processing the high-grade resource at the Island Gold Project through the existing mill facilities.
Address:
100 Adelaide Street West, Suite 405, Toronto, Ontario, Canada M5H 1S3
This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this news
release.
Some statements contained in this release are forward-looking and, therefore,
involve uncertainties or risks that could cause actual results to differ
materially. Such forward-looking statements include comments regarding mining
and milling operations, mineral resource statements and exploration program
performance. Factors that could cause actual results to differ materially
include metal price volatility, economic and political events affecting metal
supply and demand, fluctuations in mineralization grade, geological, technical,
mining or processing problems, exploration programs and future results of
exploration programs at the Island Gold Project, future profitability and
production. The Company disclaims any obligation to update forward-looking
statements.
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Contact:
Patricia Mining Corp.
Dr. Richard H. Sutcliffe
President & CEO
Phone: 416-214-4900
Fax: 416-864-0620
or
Patricia Mining Corp.
Mr. C. Nigel Lees
Chairman
Phone: 416-214-4900
Fax: 416-864-0620
or
Patricia Mining Corp.
Mr. Bruce Reid
Investor Relations
Phone: 416-214-4900
www.patriciamining.com
info@patriciamining.com
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES.
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Source: PATRICIA MINING CORP. |
