TSX Venture: RMD
Shares Issued and Outstanding: 79,059,239
TORONTO, Nov. 24, 2011 /CNW/ – (RMD: TSXV). – Richmond Minerals Inc. (“Richmond” or the “Company”) announces that a conditional agreement has been reached with ARC Exploration Inc. (ARC) to sell Richmond’s 100% interest in the Lac Colombet Property (the property) located in the Ungava Bay region of Quebec. ARC will issue 1,000,000 of its common shares to Richmond and has made a non-refundable deposit of Cdn $10,000. Richmond has the right to terminate the agreement if ARC fails to list its common shares on a recognized stock exchange on or before April 30, 2012.
The Company also announces that it has received $200,000 in the form of a short term loan. The loan is secured by the 232,500 shares of Lake Shore Gold Corp. that Richmond owns. Additional loan terms require Richmond to re-pay the lender the $200,000 principal amount plus a $25,000 fee on or before March 30, 2012. Proceeds of the loan will be used to retire the Company’s outstanding convertible debenture and for general corporate purposes.
The Company also announces the resumption of diamond drilling at its Bondy Gneiss Complex (the Complex) joint venture project located south of Mont Laurier, Quebec. In this phase of drilling, Richmond as operator will be testing the strong HLEM with coaxial magnetic anomaly located in the central area of the Complex. Previous diamond drilling of induced polarization targets located approximately two kilometers south returned a highlight of 0.21% copper over a 37.45 meter interval. The drilling program is scheduled to begin on or about December 1, 2011. Richmond’s 50/50 joint venture partner, Mag Copper Ltd. (QUE: CNSX) has contributed $75,000 towards the exploration cost of this phase of drilling.
Warren Hawkins, P.Eng in his capacity as Qualified Person under National Instrument 43-101 has reviewed the contents of this news release
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Canadian National Stock Exchange has reviewed this news release and neither accepts responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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President & Chief Executive Officer