History
Richmont Mines tried a Colorado venture and a Patricia Mining deal, then sold its Quebec assets to focus on Island Gold before agreeing to be acquired by Alamos Gold in 2017.
2007-2008: Property sales and a short Colorado venture
Richmont's record opens in May 2007, when it signed a binding letter of intent to sell its East Amphi property. The buyer, price and closing terms are not in the record, so the outcome is unknown.
In November 2007 the company took an option to acquire a 50% operating interest in the Golden Wonder Mine, a past-producing gold mine in Colorado, its first move into the US in this record. In January 2008 it finished its evaluation and committed US$3 million toward a program of about US$18 million. In February 2008 it announced reserve increases and its 2007 production results, though the figures are not in the record.
The Colorado venture did not last. In October 2008 Richmont said it would terminate its joint venture option at Golden Wonder. The reason and any costs are not stated.
2008-2016: Patricia Mining and a quiet record
In December 2008 securityholders approved Richmont's planned acquisition of Patricia Mining Corp., and five days later the company announced it had completed the purchase. The terms are not in the record.
After that the record is quiet for several years. No major events are recorded between December 2008 and January 2017, and no share counts were recorded for the period.
2017: Island Gold and the Quebec sale
In January 2017 Richmont reported year-end 2016 reserves. At Island Gold, in Ontario, proven and probable reserves rose 34% to 752,200 ounces at 9.17 grams per tonne, with inferred resources (a less certain category) of 995,700 ounces at 10.18 grams per tonne. At Beaufor, in Quebec, reserves fell 30% to 44,920 ounces, because drilling did not replace what was mined and some low-grade blocks were removed. The company was producing from both mines.
In May 2017 it released a preliminary economic assessment for Island Gold. It outlined raising mine and mill output from 900 to 1,100 tonnes per day, producing about 115,000 ounces a year on average over 8 years. That would need about C$28.2 million of extra capital, with cash costs of about C$650 per ounce. It was a preliminary study, not a decision to proceed.
On September 11, 2017 Richmont agreed to sell its Quebec assets to Monarques Gold. These included the Beaufor Mine, the Camflo Mill and the Wasamac project. In return it received about 19.9% of Monarques, after subscribing about C$2 million at C$0.35 per share, plus royalties on Beaufor, Camflo and Wasamac. The sale closed on October 2, leaving Island Gold as the producing mine.
2017: The Alamos takeover
The same day as the Quebec sale agreement, Alamos Gold agreed to acquire all of Richmont's shares by a plan of arrangement, a court-approved deal. Each Richmont share would become 1.385 Alamos shares, worth C$14.20 on Alamos's September 8 close, a 22% premium to Richmont's close. Richmont holders would own about 23% of the combined company. A reciprocal C$35 million break fee applies in certain cases.
Richmont shareholders approved the deal on November 16, 2017 with 92.56% of votes cast. The Quebec Superior Court gave final approval on November 21. As of that date, closing was still expected on November 23, 2017, subject to regulatory approvals and customary conditions, and the shares had not yet been exchanged.
Written from the 14 story beats below (2007 to 21 Nov 2017), which come from the company's own announcements and filings.