Abitibi Royalties Received Final Exchange Acceptance for Normal Course Issuer Bid
TSX VENTURE: RZZ
VAL-D'OR, QUÉBEC--(Marketwired - Oct. 5, 2016) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") announces that it has received final acceptance from the TSX Venture Exchange ("TSX-V") to conduct the normal course issuer bid (the "2016 NCIB"), the details of which were previously announced on October 3, 2016. Under the 2016 NCIB, Abitibi Royalties may purchase for cancellation, from time to time at its discretion based on market conditions, share price, best use of available cash, among other factors, up to 566,182 of its issued and outstanding common shares (representing 5% of Abitibi Royalties' issued and outstanding common shares as of September 27, 2016). Purchases will be made on the open market through the facilities of the TSX-V, with TD Securities conducting the 2016 NCIB on behalf of Abitibi Royalties.
Abitibi Royalties believes that the market price of its common shares does not always give full effect to the underlying value and that, accordingly, the purchase for cancellation of shares by Abitibi Royalties during these times will benefit the remaining shareholders by increasing their proportionate ownership in the Company.
The 2016 NCIB will commence on October 6, 2016, and will terminate on October 5, 2017, or such earlier time as the 2016 NCIB is completed or at the option of Abitibi Royalties. Any shares acquired by Abitibi Royalties pursuant to the 2016 NCIB will be cancelled.
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 inside the Malartic CHL property 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. The Company owns common shares in Yamana Gold and Agnico Eagle Mines (market value), plus cash (as of June 30, 2016) of CDN$47.0 million. The Company is debt free.
Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.4% and 12.3% interest in Abitibi Royalties, respectively.
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.