15 April 2011OPTION AGREEMENT TO BUY ROD MILLS - BUENA VISTA...

15 April 2011
OPTION AGREEMENT TO BUY ROD MILLS - BUENA VISTA IRON PROJECT
Richmond Mining Limited (?Richmond? or the ?Company?) announces that its wholly owned
US subsidiary, Nevada Iron, LLC; has signed an Option Agreement to acquire three rod mills
for the Buena Vista Iron Project.
The Company?s Managing Director, Mr Max Nind, stated ?the acquisition is the first major
step in the Company?s ambition to fast track the development of Buena Vista and enter the
iron ore market by the December quarter of 2012.
?It is essential for the development of Buena Vista that the rod mills are secured as the
acquisition allows the Company to avoid potential lengthy delays associated with the
delivery timelines for new, long lead time mining plant and equipment?, he said.
The rod mills are part of the proposed grinding circuit at Buena Vista and will be used to
reduce the magnetite concentrate to P80 600 microns (80% passing 0.6 mm) prior to
magnetic separation and additional grinding in a ball mill.
The mills to be acquired are three Nordberg 13.0 foot diameter x 18.6 foot length (3.96 m
diameter x 5.67 m EGL) fixed speed 1,500 HP (1,125 kW) overflow rod mills that are located
in USA.
The purchase price for the rod mills and associated spares is US$3,750,000, which is
payable as follows:
? US$375,000 paid upon signing of the Option Agreement;
? US$562,500 payable within 60 days;
? US$750,000 payable within 120 days; and
? US$2,062,500 payable within 180 days.
In the event that any payments are not made within the stipulated time frame, then the
Option Agreement will expire and all payments made will be non-refundable.