VAL-D’OR, Québec, July 11, 2018 (GLOBE NEWSWIRE) -- Abitibi Royalties Inc. (TSX-V:RZZ) (OTC-Nasdaq Intl:ATBYF) (“Abitibi Royalties” or the “Company”) announces that it has entered into an agreement with an arm’s length, third party seller, in order to acquire various 1.5% net smelter royalties (“NSR”) on projects owned by Agnico Eagle Mines Limited (“Agnico Eagle”) throughout the Abitibi region in Québec (Fig. 1, 2 & 3). These projects include 1) Callahan (6.5 km northeast and northwest of the Canadian Malartic Mine and Goldex Mine and 1.5 km north of the Wesdome’s Kiena Deep discovery), 2) Cadillac (part of the LaRonde Mine), 3) Thompson River (part of the Goldex Mine) and 4) Malartic Break (6 km northwest of the Canadian Malartic Mine). The purchase price paid by the Company for the NSR royalties totals US$575,000 (CDN$755,000), which was paid in cash and from treasury.
The Callahan Project is believed to be the most advanced of the four projects, which includes a vertical exploration shaft to a depth of approximately 230 metres that was constructed by Falconbridge Ltd. in 1980 and a 1.5 kilometre drift. In 2008, Northern Star Mining Corp. (“Northern Star”), the projects former owner, filed a NI 43-101 Technical Report that contained a historical resource estimate for the Callahan Project that can be downloaded here (page 4). The historical resource estimate is for informational purposes only, is not considered valid under NI 43-101 and should not be relied upon.
A total of 1.0% of the NSR royalties can be repurchased by Agnico Eagle by paying US$1.0 million (CDN$1.3 million based on current exchange rates) to Abitibi Royalties.
QUALIFIED PERSON
Glenn J. Mullan, Chairman, is the Qualified Person (as that term is defined in National Instrument 43-101 – Standards of Disclosure for Minerals Projects) who has reviewed and approved the technical section of this news release, which is based on public information provided by Agnico Eagle and Northern Star and without independent verification.
About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on portions of the Odyssey Project, East Malartic, Jeffrey Zone, eastern portions 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 earlier stage properties near producing mines. The Company has approximately CDN$41.4 million in cash and securities and is debt free.
For additional information, please contact:
| Shanda Kilborn – Director, Corporate Development 2864 chemin Sullivan Val-d’Or, Québec J9P 0B9 Tel.: 1-888-392-3857 Email: info@abitibiroyalties.com |
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.
Fig. 1 Abitibi Region –Abitibi Royalties Holdings
Fig. 2 – Cadillac Royalty – LaRonde Mine
Fig. 3 Thompson River Royalty – Goldex Mine