Abitibi Royalties "Royalty Search" Update
2% NSR Purchased Next to New Gold's Rainy River Mine
Val-d’Or, Québec, September 17th, 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 a private company to acquire a 2% net smelter royalty (“NSR”) on claims located approximately two kilometres west of New Gold’s Rainy River mine in Ontario that is currently under construction (Fig. 1). Abitibi Royalties is also entitled to 15% of any cash proceeds should the project be sold or joint ventured. This is the seventh royalty purchased near an existing mine since the “Royalty Search” was launched on June 9th.
2% NSR Purchased West of Rainy River Mine (Fig. 1).
In exchange for a 2% NSR on the 128 hectare claim and 15% of any cash proceeds should the property be sold or joint ventured, Abitibi Royalties has agreed to pay Cdn$12,000. The cash consideration will be paid by Abitibi Royalties from its working capital.
Since launching the Royalty Search on June 9th, seven royalties near existing mining operations have been acquired, which include royalties surrounding or near Eldorado’s Efemcukuru mine in Turkey, Alamos Gold’s Young-Davidson mine in Ontario, Agnico Eagle and Yamana’s Canadian Malartic mine in Quebec, Metanor Resources Bachelor mine in Quebec, Hudbay’s 777 mine in Manitoba, Goldcorp’s Red Lake mine in Ontario and now New Gold’s Rainy River mine. 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 60 properties have been submitted through the website and seven agreements have been finalized.
About Abitibi Royalties Inc.
Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, the Jeffrey Zone and the eastern portion of the Barnat Extension Zone 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.
For additional information, please contact:
Ian J. Ball
President & CEO
2864 chemin Sullivan
Val-d’Or, Québec J9P 0B9
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.
Figure 1. - Abitibi Royalties 2% NSR West of New Gold’s Rainy River Mine