TORONTO, Oct. 2, 2017 /PRNewswire/ - Richmont Mines Inc.
(TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation") announces
that it has acquired 40,348,203 common shares ("Common Shares") of
Monarques Gold Corporation ("Monarques"), representing
approximately 19.9% of the outstanding Common Shares. Prior to such
acquisition, the Corporation did not own any Common Shares of
Monarques.
On October 2, 2017, Richmont
acquired 34,633,203 Common Shares of Monarques as consideration for
the sale of certain assets of Richmont to Monarques (the
"Transaction"). In addition, in connection with the Transaction,
Richmont acquired 5,715,000 Common Shares of Monarques through the
conversion of 5,715,000 subscription receipts of Monarques that
Richmont had previously subscribed for at a price of $0.35 per subscription receipt.
Richmont holds its interest in the Common Shares for investment
purposes and will continue to monitor the business, prospects,
financial condition and potential capital requirements of
Monarques. Depending on its evaluation of these and other factors,
Richmont may from time to time in the future increase or decrease
its direct or indirect ownership, control or direction over the
Common Shares or other securities of Monarques through market
transactions, private agreements, subscriptions from treasury or
otherwise. Richmont has agreed with Monarques that it will not sell
the 5,715,000 shares acquired through subscription receipts for a
period of one year, subject to certain exceptions.
The registered office of Richmont is located at 161 avenue
Principale, Rouyn-Noranda, Québec,
J9X 4P6.
About Richmont Mines Inc.
Richmont Mines currently
produces gold from the Island Gold Mine in Ontario, where it is also advancing
development of the significant high-grade resource extension at
depth. With more than 35 years of experience in gold production,
exploration and development, and prudent financial management, the
Corporation is well-positioned to cost-effectively build its
Canadian reserve base and to successfully enter its next phase of
growth.
Forward-Looking Statements
This news release contains
forward-looking statements that include risks and uncertainties.
When used in this news release, the words "estimate", "project",
"anticipate", "expect", "intend", "believe", "hope", "may",
"objective" and similar expressions, as well as "will", "shall" and
other indications of future tense, are intended to identify
forward-looking statements. The forward-looking statements are
based on current expectations and apply only as of the date on
which they were made. Except as may be required by law or
regulation, the Corporation undertakes no obligation and disclaims
any responsibility to publicly update or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise.
The factors that could cause actual results to differ materially
from those indicated in such forward-looking statements include
changes in the prevailing price of gold, the Canadian-United States
exchange rate, grade of ore mined and unforeseen difficulties in
mining operations that could affect revenue and production costs.
Other risks may be set out in Richmont Mines' Annual Information
Form, Annual Reports and periodic reports. The forward-looking
information contained herein is made as of the date of this news
release.
SOURCE Richmont Mines