Abitibi Royalties to Acquire 15% Carried Net Profit Interest Immediately West of Canadian Malartic Mine Open Pit
TSX VENTURE: RZZ
VAL-D’OR, Québec, July 05, 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 a group of arm’s length, third party sellers, in order to acquire a 15% carried net profit interest (“NPI”) on the mineral claims located immediately west of the Canadian Malartic Mine open pit in Québec (Fig 1 & 2). The mineral claims are owned and operated by the Canadian Malartic Mine, a partnership between Agnico Eagle Mines (“Agnico Eagle”) and Yamana Gold (“Yamana”). The purchase price paid by the Company totals CDN$400,000, which will be paid in cash and from treasury. The transaction is expected to close by the end of Q3 2018.
The mineral claims contain the historic Radium Zone and the western portion of the CM West near pit target (Fig. 1). Agnico Eagle has stated that it is evaluating several opportunities (which have not been approved) at a number of operations to enhance its production profile in 2019 through 2022. The near pit targets around the Canadian Malartic open pit, were identified as one such opportunity. The Company believes the CM West area is included in the near pit targets being evaluated, in addition to the Company’s existing net smelter royalties (“NSR”) on other near pit targets including the Charlie Zone (2% NSR) and eastern portions of the Gouldie Zone (2% NSR), Barnat Extension/Barnat SouthWall Contact (3% NSR) and also the Sheehan Zone (3% NSR).
Information contained in this news release is based on public disclosures made by Agnico Eagle and Yamana 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 early stage properties near producing mines. The Company has approximately CDN$44.1 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
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.