Richmont Mines has completed a Canadian $10 million worth private placement with Mr. Bob Buchan. The gold industry veteran has been appointed to the Board of Directors of Richmont Mines following the investment made by him and two of his immediate family members.
The private placement was made in the form of convertible debentures valid for 5 years. These will have an annual interest rate of 7.6% and will be convertible to common shares of Richmont Mines at a price of Canadian $12.17 each. The private placement is still subject to approvals from the Ney York stock exchange.
The investors, that are Mr Buchan and his family members, also have the right to demand the payment of the debentures in full after 18 months from the date that they were issued. Also part of the agreement is that Richmont Mines has the right to redeem the debentures in full after 24 months from the date of issue.
Richmont Mines Inc is a gold mining company which has produced over 1,200,000 ounces of gold from its Quebec, Newfoundland and Ontario based mining operations. The company is hoping to begin production at Francoer Mine and raise its annual gold production to 100,000 ounces of gold. It is also operating the Island Gold and Beaufor mines besides being on the look out for more strategic acquisitions and partnerships.