Richmont Mines Inc. (TSX:RIC,NYSE MKT:RIC) has signed a definitive agreement whereby it has secured the outstanding 31 percent ownership of four patented claims on the Island Gold Mine property. Following the transaction, Richmont will own 100 percent of the claims.
As quoted in the press release:
The 31% ownership held by the third party will be acquired by Richmont in return for a 3% Net Smelter Return (“NSR”) royalty that is payable on 100% of the mineral production from the four claims. The transaction is expected to close in the next few days.
Richmont Mines interim president and CEO, Elaine Ellingham, said:
Consolidating Richmont’s ownership to 100% of the Island Gold Mine property is an important step and clears the path for us to accelerate our mine development. With a million ounce gold resource at depth, our cornerstone Island Gold Mine is an asset that we believe has significant potential to transition into a long-life, high-grade and lower-cost operation, and is therefore an important driver of future value for our shareholders. With this agreement, we have successfully acquired 100% ownership of these four claims, within which approximately 61% of the resources identified to date at depth are contained. Our development ramp has already reached the uppermost portion of this mineralization at a vertical depth of 625 metres, and we are progressing with our development plans with a view of maximizing value for Richmont and our shareholders.