To complete financing of the Nugget Pond gold mine, Richmont Mines (RIC-T) has arranged a $12-million loan and a $2-million line of credit with the National Bank of Canada.
The financing will provide sufficient funds for construction and startup of the underground mine, near Baie Verte, Nfld.
The mill foundations at the Nugget Pond site are complete, and most of the equipment is en route to the property. Construction will continue throughout the summer and autumn.
The mine is 60% developed, with just 200 metres of ramp left to complete.
Mining will begin shortly so that a stockpile will be ready for milling in the first quarter of 1997.
The mine is expected to produce 46,000 oz. gold per year at a cash cost of US$153 per oz., ranking it among the lowest-cost gold producers in Canada.
When the mine is operational, Richmont’s gold output will jump to 90,000 oz.
per year, and earnings of close to $12 million are projected.
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