Abitibi Royalties "Royalty Search" Update
Second Royalty Purchased Near Alamos Gold's Young-Davidson Mine
Val-d’Or, Québec, October 26th, 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 Tamarack Gold Resources Inc. (“Tamarack”) to acquire a 1.5% net smelter royalty (“NSR”) on McDonnel Creek property located approximately six kilometres northeast of Alamos Gold Inc.’s (“Alamos Gold”) Young-Davidson mine in Ontario ( Fig. 1 ). This is the second royalty acquired near the Young-Davidson mine since the “Royalty Search” was launched and the eighth royalty overall.
1.5% NSR Purchased Near Young-Davidson Mine ( Fig. 1 )
The McDonnel Creek property consists of 576 hectares and is located approximately six kilometres northeast of Alamos Gold’s Young-Davidson mine in Ontario ( Fig. 1 ). In exchange for the 1.5% NSR, Abitibi Royalties has agreed to pay approximately Cdn$6,200. The cash consideration will be paid by Abitibi Royalties from its working capital.
Tamarack is actively searching for a partner in order to explore the McDonnel Creek property. To contact Tamarack, call Ivars Azis at 416.303.6684 or visit www.tamarackgold.com.
Since launching the Royalty Search on June 9th, eight royalties near existing mining operations have been acquired, which include royalties surrounding or near Agnico Eagle and Yamana’s Canadian Malartic mine in Quebec, Alamos Gold’s Young-Davidson mine in Ontario, Eldorado’s Efemcukuru mine in Turkey, Goldcorp’s Red Lake mine in Ontario, Hudbay’s 777 mine in Manitoba, Metanor Resources Bachelor mine in Québec and New Gold’s Rainy River mine in Ontario. A list of these royalties can be found here.
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. To date, approximately 50 properties have been submitted through the website and 6 agreements have been finalized.
Update on Cash Flows
Since last reported on August 31st, the Company’s total cash flow in 2015 has increased to approximately $750,000 from $531,500 due to additional investment income.
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 is building a portfolio of royalties on early stage properties near producing mines and it 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, 444,197 shares of Agnico Eagle, approximately $1.8 million in cash and no long-term debt.
Golden Valley Mines and Rob McEwen hold approximately 51.3% and 8.7% interest in Abitibi Royalties, respectively.
Figure 1. - Abitibi Royalties’ 1.5% NSR Northeast of Young-Davidson Mine