Richmont Mines has raised $31 million in a bought deal prospectus offering to fund an aggressive exploration program and extend the mine life of its Island Gold Mine in northeastern Ontario.
The Island Gold Mine is located near Dubreuilville, 83 kilometres northeast of Wawa.
The high-grade mine has produced more than 320,000 ounces of gold since 2007 and reported proven and probable reserves of over two million tonnes at grades of up to 8.52 ounces per tonne at year-end 2015.
An 86,500-metre exploration drilling program is scheduled for completion by the end of September and will be followed by a phase two drilling program of 142,000 metres.
Drilling results from the phase one program include 18.63 g/t gold over 6.6 metres and 17.41 g/t gold over 2.27 metres.
The Island Gold Mine produced 18,617 ounces of gold for the quarter ending June 30th at cash costs of C$766
