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The 22-year-old had a loan spell at Brunton Park last season and was allowed to leave by Gary Johnson as he saught first team football and although he was out of contract the club still held his registration which is the reason for an entitlement to a fee.
Cumbrians boss John Ward said: "I'm absolutely delighted to have added Richard to the squad."
"I think he is an excellent signing for us and it's paticularily good to sign a player we known which means there won't be any bedding in period."