Abitibi Royalties: Royalty Production Commences From Canadian Malartic Mine
TSX VENTURE: RZZ
VAL-D’OR, Québec, Jan. 16, 2019 (GLOBE NEWSWIRE) -- Abitibi Royalties Inc. (RZZ-TSX-V, ATBYF-OTC-Nasdaq Intl: “Abitibi Royalties” or the “Company”) is pleased to announce that production commenced at the end of Q4-2018 in the area covered by the Company’s 3% net smelter royalty (“NSR”) at the Canadian Malartic Mine near Val-d’Or Québec (Fig. 1). Canadian Malartic is the largest gold mine in Canada and is operated by Agnico Eagle Mines Limited and Yamana Gold Inc.
In 2018, the Company generated total cash flow(1) of approximately CDN$2.7 million with CDN$692,000 coming in Q4-2018, primarily from option premiums and a nominal initial contribution from royalties. The Company expects to release an updated 3-year production schedule for its royalties at the Canadian Malartic Mine in late Q1-2019 or early Q2-2019. Royalty payments from the Company’s 3% NSR are paid 15 days after each calendar quarter. The Company has 12,495,200 shares outstanding and 12,576,371 shares on a fully diluted basis.
(1) Cash Flow = option premiums, dividends, realized capital gains from non-core equity investment (no capital gains were realized from the Company’s Agnico Eagle or Yamana shares as none were sold in 2018), royalties and interest earned.
About Abitibi Royalties
Abitibi Royalties owns various royalty interests 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$34.7 million (as of January 15, 2019) 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.
Figure 1. Abitibi Royalties’ Canadian Malartic Royalties