Richmont Mines and LKA Agree to Extend Initial
Commitment Period to Complete Current
Golden Wonder Drilling Program
Drilling underway at Drill Station #4
MONTREAL, Quebec, Canada and LAKE CITY, CO, September 4, 2008
- Richmont Mines Inc. (AMEX-TSX: RIC) a gold exploration, development and production
company with operations in North America, and LKA International, Inc.
(OTCBB: LKAI) have agreed to extend by sixty days the �Initial Commitment
Period� described in the amended and restated �Letter Agreement� dated December
which grants Richmont an option to earn a 50% joint-venture interest in LKA�s
Golden Wonder Project located near Lake City, Colorado. The Initial Commitment
Period, originally set to expire on September 1, 2008, will now be extended
until November 1, 2008.
The extension of Richmont�s Initial Commitment Period will allow for the
completion and evaluation of drilling results from Drill Stations #4 and #5
which are located nearest the Golden Wonder�s previous production zone. Upon
completion of the extended Initial Commitment Period, Richmont will have the
option, but not the obligation, to proceed with the �Second Commitment Period�
during which another US$3 million investment in the project will be required
within the following eight months.
By extending the Initial Commitment Period, the parties have agreed that
all subsequent funding segments/periods will be likewise extended. Richmont
will be required to contribute a total of US$18 million over a sixty-two month
period to earn a 50% interest in the Golden Wonder Project.
President and Chief Executive Officer
About Richmont Mines Inc.
Richmont Mines produces gold from its operations in Canada
and is focused on building its reserves in North America.
The Company has extensive experience in gold exploration, development and
mining. Since it began production in 1991, the Company has produced more than
one million ounces of gold from its holdings in Quebec, Ontario
and Newfoundland. Richmont Mines�
strategy is to cost effectively develop its mining assets, exploit mineralized
reserves on properties owned and acquired, or develop partnerships to expand
its reserve base.
More information on Richmont Mines can be
found on its website at: www.richmont-mines.com.
news release contains forward-looking statements that include risks and
uncertainties. When used in this news release, the words �estimate�, �project�,
�anticipate�, �expect�, �intend�, �believe�, �hope�, �may� and similar
expressions, as well as �will�, �shall� and other indications of future tense,
are intended to identify forward-looking statements. The forward-looking
statements are based on current expectations and apply only as of the date on
which they were made.
factors that could cause actual results to differ materially from those
indicated in such forward-looking statements include changes in the prevailing
price of gold, the Canadian-United States exchange rate, grade of ore mined and
unforeseen difficulties in mining operations that could affect revenue and
production costs. Other factors such as uncertainties regarding government
regulations could also affect the results. Other risks may be set out in
Richmont Mines� Annual Information Form,
Annual Reports and periodic reports.
For more information, please contact:
Investor Relations������������������������������������������������������������� Listings: TSX � Amex