TORONTO, May 20 /CNW/ - Richmond Minerals Inc. (Richmond) (TSXV: RMD) is pleased to announce that it has entered into a Letter of Understanding ("LOU") with Vendome Capital II Corp. ("Vendome"), a capital pool company, whereby Vendome can acquire from Richmond a 100% interest in a contiguous group of 86 mining claims located in the Lac Jogues and Fort MacKenzie region of Quebec, referred to as the Lac Colombet Copper Property (the "Property"). Terms of the LOU require Vendome to pay Richmond a cash payment of $20,000 and issue 600,000 common shares of Vendome to acquire a 75% interest in the Property. Vendome must also incur $250,000 in exploration expenses over a two-year period. Vendome can earn the remaining 25% interest in the Property by the issuance of 600,000 additional common shares of Vendome and a further cash payment of $25,000. The transaction shall serve as Vendome's Qualifying Transaction as defined in Policy 2.4 of the TSX Venture Exchange and is subject to approval by the Exchange.
Mr. Birks Bovaird, President of Richmond, comments: "We are very pleased to have entered into this agreement with Vendome. Due to the Company's ongoing commitments and focus on our projects in central Quebec, we are excited that exploration work will be continuing this season on the Property." The exploration program carried out in 2005 on the Property by Richmond identified several copper showings and glacial erractics containing high-grade copper.
We seek safe harbor.
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 press release and neither accepts responsibility for the adequacy or accuracy of this news release.
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