Richmont Mines Closes Previously Announced Senior Credit Facility for Up to CAN$50 Million With Macquarie Bank Limited to

Richmont Mines Closes Previously Announced Senior Credit Facility for Up to 
CAN$50 Million With Macquarie Bank Limited to Advance Island
Gold Deep Project 
MONTREAL, QUEBEC -- (Marketwired) -- 08/23/13 -- Richmont Mines Inc.
(TSX:RIC)(NYSE MKT:RIC), ("Richmont" or the "Corporation"), is
pleased to announce that it has closed the Senior Secured Credit
Facility (the "Facility") for up to CAN$50 million with Macquarie
Bank Limited ("MBL" or "Macquarie") previously announced on June 17,
2013. The Corporation plans to use the Facility to fund the long-term
development of the Island Gold Deep project and for working capital
commitments at the Island Gold Mine in Dubreuilville, Ontario. The
Facility is being provided in Canadian dollars, is subject to an
interest rate of CDOR plus 700 basis points, and may be prepaid, in
whole or in part, at any time without penalty, subject to standard
break costs. The Corporation may request that the interest rate be
fixed for the term of the Facility. All figures are in Canadian
dollars, unless otherwise noted. 
Paul Carmel, President and CEO of Richmont commented: "We are
delighted to have closed this financing with Macquarie. It is
testimony to the quality of our Island Gold Deep project, an asset
with significant future potential for the Corporation and its
shareholders. The loan provides Richmont with additional flexibility
and financial strength to unlock Island Gold Deep's potential and
allow the Corporation to enter its next phase of growth."  
The $50 million Facility consists of three tranches, all of which are
subject to certain conditions being met prior to drawdown. The
Facility terms have been slightly adjusted from those set out in the
initial Letter of Offer for the Facility, most notably to provide for
a longer availability period under Tranche A which allows the
Corporation more flexibility to manage Facility drawdowns and reduce
interest financing costs. The final terms of the Facility are
outlined below: 


 
--  Tranche A: $12.5 million. Available as a single drawdown until September
    30, 2013, with an initial maturity date of September 30, 2014. The
    maturity date may be extended by 21 months, until June 30, 2016, if an
    initial gold hedging program (Initial Gold Hedging) is established
    before December 31, 2013 on a total of 50,000 ounces over a 30 month
    period ending June 30, 2016 at a minimum price of US$1,300/oz. If the
    50,000 ounces of hedging is established before September 30, 2013, the
    drawdown availability period will be extended to March 31, 2014. 
    
--  Tranche B: $12.5 million. Available as a single drawdown until December
    31, 2013, which may be extended by an additional 6 months to June 30,
    2014 if the Initial Gold Hedging is established before December 31,
    2013. The availability of Tranche B is subject to certain conditions
    being met including that the Corporation executes the Initial Gold
    Hedging and an additional gold hedging program covering an additional
    75,000 ounces (for a total of 125,000 ounces if both Tranche A and
    Tranche B are drawn) at a minimum price of US$1,350/oz, for the period
    from the tranche drawdown date through December 31, 2017. The maturity
    date of this tranche is December 16, 2016. 
    
--  Tranche C: $25 million. This tranche is subject to certain additional
    conditions, and has a final maturity of December 31, 2017. In order to
    have access to this tranche the Corporation must have fully drawn on
    tranches A and B, and would have to meet other conditions, including
    receipt of additional required MBL approvals. 

 
According to the terms of the Facility, the Corporation issued
warrants for the purchase of 1,250,000 Richmont shares to MBL on the
date of the closing of the Facility Agreement. The warrants will
expire 3 years from the original date of their issue to MBL. A total
of 812,500 warrants vested immediately upon closing of the Facility
Agreement, with a strike price of CAN$2.45 per share. The remaining
437,500 warrants will vest when certain conditions to drawdown
Tranche B are fully met by the Corporation. These warrants will also
have a strike price of CAN$2.45 per share. 
Additional details about the Island Gold Deep Project  
The Island Gold Deep C Zone project contains an estimated Inferred
mineral resource of 1.5 million tonnes grading 10.73 g/t Au for
508,000 ounces as at January 25, 2013. The Corporation expects to
release an updated resource calculation for the Island Gold Deep
project before the end of the third quarter of 2013. Island Gold Deep
is sub-vertical, and is located at a depth of between 450 metres and
1,000 metres and is open in all directions. Island Gold Deep appears
to be an extension of the areas currently being mined above in the
Island Gold Mine, but at higher grades (10.73 g/t undiluted vs 5.60
g/t diluted) and greater widths (4.5 metres versus 2.7 metres). The
Corporation has a capital budget for the project of $17 million in
2013, with work focused on extending the ramp at depth to establish a
more optimal horizon for definition drilling and to access the
deposit in order to begin mining operations. The ramp is expected to
reach an approximate depth of 570 metres by year-end 2013, and 750
metres by year-end 2014. As the ramp progresses, an exploration drift
and an initial development level will be established at depths deemed
optimal for the Island Gold Deep zone. 
Additional details about the Island Gold Mine Property  
The 59.12 km2 (5,912 hectares) Island Gold property is located 83 km
northeast of Wawa, Ontario. Ore from the Island Gold Mine is
processed at Richmont's on-site mill, an 850 tonne per day rated CIP
facility. Since Island Gold began commercial production in October
2007, Richmont has produced more than 225,000 ounces of gold.
Underground operations are accessed via a ramp, and mining activities
currently reach a vertical depth of approximately 400 metres. As of
December 31, 2012, the Island Gold Mine had estimated Proven &
Probable reserves of 141,456 Au ounces, estimated Measured &
Indicated Resources of 110,958 Au ounces, and additional estimated
Inferred Resources of 55,744 Au ounces. 
About Richmont Mines Inc.  
Richmont Mines has produced over 1,300,000 ounces of gold from its
operations in Quebec, Ontario and Newfoundland since beginning
production in 1991. The Corporation currently produces gold from the
Island Gold Mine in Ontario and the Beaufor Mine in Quebec and is
advancing three gold projects, the Island Gold Deep, W Zone and the
Monique Gold projects. With extensive experience in gold exploration,
development and mining, the Corporation is well positioned to
cost-effectively build its Canadian reserve base through a
combination of organic growth, strategic acquisitions and
partnerships. Richmont routinely posts news and other important
information on its website (www.richmont-mines.com). 
About Macquarie Bank Limited  
MBL is a subsidiary of Macquarie Group, a global financial services
firm headquartered in Sydney, Australia. With offices around the
world, including Vancouver and Toronto, the Metals and Energy Capital
Division of MBL is a leading provider of debt, equity and other forms
of financing to the global resources industry. 
Forward-Looking Statements  
This 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 simi
lar 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. 
The 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. 
Cautionary note to US investors concerning resource estimates  
Information in this press release is intended to comply with the
requirements of the Toronto Stock Exchange and applicable Canadian
securities legislation, which differ in certain respects with the
rules and regulations promulgated under the United States Securities
Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by
the SEC. The reserve and resource estimates in this press release
were prepared in accordance with Regulation 43-101 adopted by the
Canadian Securities Administrators. The requirements of Regulation
43-101 differ significantly from the requirements of the United
States Securities and Exchange Commission (the "SEC"). 
U.S. Investors are urged to consider the disclosure in our annual
report on Form 20-F, File No. 001-14598, as filed with the SEC under
the Exchange Act, which may be obtained from us (without cost) or
from the SEC's web site: http://sec.gov/edgar.shtml. 
Regulation 43-101  
The geological data in this news release has been reviewed by Mr.
Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of
Richmont Mines Inc., and a qualified person as defined by R 43-101. 
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Contacts:
Pierre Rougeau
Executive Vice-President and Chief Financial Officer
Richmont Mines Inc.
514 397-1410 ext. 103
prougeau@richmont-mines.com
www.richmont-mines.com
 
 
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