Richmont Mines (RIC-T) May 16, '16 announces that it has entered into an agreement with Macquarie Capital Markets Canada Ltd. ("Macquarie") as lead underwriter on behalf of a syndicate of underwriters, for the issuance of 2.6 million common shares of the Corporation, on a bought-deal basis, at a price of CAN$10.40 per share (the "Offering Price") for gross proceeds of CAN$27 million (the "Offering").
In addition, the underwriters have been granted an over-allotment option to purchase up to an additional 390,000 million common shares from the Corporation (the "Over-Allotment Option"), exercisable in whole or in part at the Offering Price for a period of 30 days from closing of the Offering, for additional gross proceeds of up to approximately CAN$4 million. If the Over-Allotment Option is exercised in full, the total gross proceeds to Richmont will be CAN$31 million. The Corporation intends to use the net proceeds to aggressively expand the current exploration program as well as potential organic growth opportunities at the cornerstone Island Gold Mine. According to the terms of the Offering, the Corporation's common shares will be issued under a short-form prospectus to be filed in all provinces of Canada, pursuant to the short-form prospectus system contemplated by National Instrument 44-101 - Short Form Prospectus Distributions.
Richmont Mines Inc.
Renaud Adams
President and CEO
416 368-0291 ext. 101
Richmont Mines Inc.
Anne Day
Vice-President, Investor Relations
416 368-0291 ext. 105
www.richmont-mines.com |
