Abitibi Royalties Announces Update on "The Royalty Search"
2% NSR Purchased Southwest of 777 Mine
Val-d’Or, Québec, July 8th, 2015 – Abitibi Royalties Inc. (RZZ-TSX-V: “Abitibi Royalties” or the “Company”) is pleased to announce that it has entered into a binding Letter of Intent with Nordic Minerals Ltd. (“Nordic”) to acquire a 2% net smelter royalty (“NSR”) on its mineral property, located approximately 5 kilometres southwest of Hudbay Minerals Inc.’s 777 mine in Manitoba (Fig. 1).
2% NSR Purchased Southwest of 777 Mine (Fig. 1)
The mineral property consists of 330 hectares (Fig. 1). In exchange for the 2% NSR, Abitibi Royalties will pay the annual claim fees due in 2016 that are expected to total approximately Cdn$5,000. There is a mutual 3 year option between the Company and Nordic for Abitibi Royalties to pay an amount equal to the annual maintenance fees required to maintain the property in good standing, in consideration for which the 2% NSR will increase by 1% for each annual payment made on behalf of Nordic. In addition, Abitibi Royalties has agreed to pay Nordic approximately Cdn$5,000 in exchange for the right to receive 15% of total proceeds should the property be sold. The cash consideration will be paid by Abitibi Royalties from its working capital.
Nordic is actively searching for a partner in order to explore the mineral property southwest of the 777 mine. To contact Nordic, please call Donald Benson at 1-204-955-5042.
The Royalty Search
On June 9th, 2015, Abitibi Royalties launched the “Royalty Search”. The Royalty Search (www.abitibiroyalties.com) is an easy to use website that allows mining companies and prospectors a quick way of accessing capital in this difficult commodities market.
Abitibi Royalties is offering to pay the annual claim fees/taxes related to:
1) Existing mineral properties or
2) Staking of new mineral properties
In return for paying these fees, Abitibi Royalties would be granted a NSR on the property. Many claim holders are having a difficult time paying the fees associated with their property and face losing the mineral claims or they do not have the capital needed to stake new properties. To date, approximately 40 properties have been submitted through the website and 3 agreements have been finalized.
About Abitibi Royalties Inc.
Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, Jeffrey Zone and the eastern portion of the Barnat Extension and a 2% NSR on portions of the Gouldie and Charlie zones all at the Canadian Malartic mine near Val-d’Or, Québec. In addition, the Company holds 100% title to the Luc Bourdon and Bourdon West Prospects in the Ring of Fire, Ontario. The Company owns 3,549,695 shares of Yamana Gold and 459,197 shares of Agnico Eagle Mines.
Golden Valley Mines and Rob McEwen hold approximately 53.3% and 8.7% interest in Abitibi Royalties, respectively.
For additional information, please contact:
Ian J. Ball
President & CEO
1 King West St. Suite 4202
Toronto, Ontario M5H 1A1
Forward Looking Statements:
This news release contains certain statements that may be deemed “forward-looking statements”. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.