Source: Abitibi Royalties Inc.
Royalties acquired near Goldcorp's Red Lake mine & Pure Gold's Madsen mine
Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi
Royalties" or the "Company") is pleased to announce that the Company has
partnered with AuRico Metals Inc. ("AuRico") for the purpose of
entering into an agreement with Frontline Gold Corporation ("Frontline")
that allows each company to acquire a 1% net smelter royalty ("NSR") on
several early stage exploration projects in the Red Lake district. The
exploration projects are located south of Goldcorp's Red Lake mine, with
the largest claim package adjoining Pure Gold's Madsen mine to the east
and south (Fig. 1 - Claim Map).
These acquisitions will build on the Company's Red Lake
royalty portfolio, which also includes a 2% NSR on the White Horse
Island Project (also owned by Frontline), situated between the Goldcorp /
Premier Gold Rahill-Bonanza Gold Property and Premier Gold's Hasaga
Gold Property (Fig. 1).
A total of fourteen royalties have now been purchased near existing
mines since the Company's "Royalty Search" was launched in June 2015 (http://www.abitibiroyalties.com). Please click here for a full list.
1% NSR - RED LAKE EXPLORATION PROJECTS
In exchange for the 1% NSR on the Red Lake exploration
projects, Abitibi Royalties has agreed to pay Frontline Cdn$13,000, with
AuRico agreeing to pay an equal amount. Abitibi Royalties will pay the
cash consideration from its treasury.
Since launching the Royalty Search in June 2015, fourteen
royalties near existing mining operations have been acquired, which
include royalties surrounding or near Agnico Eagle and Yamana's Canadian
Malartic mine in Québec, Agnico Eagle's Lapa mine in Québec, Alamos
Gold's Young-Davidson mine in Ontario, Eldorado's Efemcukuru mine in
Turkey, Goldcorp's Red Lake mine in Ontario, Hudbay's 777 mine in
Manitoba, Metanor Resources Bachelor mine in Québec and New Gold's Rainy
River mine in Ontario.
The Royalty Search (www.abitibiroyalties.com) is an easy to use website that allows mining companies and prospectors a quick way of accessing capital.
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 an NSR on the property. To date over 100 properties have been
submitted through the website and 14 agreements have been finalized.
MENDERES GOLD PROJECT - TURKEY (3% NSR)
The Company has been informed by Frontline that drilling
initially scheduled for September / October has been deferred to the
first half of 2017 in order to complete additional work that should
allow Frontline to better target possible extensions of Eldorado Gold
Corporation's Efemcukuru gold mine in Turkey.
YAMANA RIGHTS OFFERING
The Company has decided to sell its purchase rights
("Purchase Rights") payable by Yamana Gold and not participate in the
Brio Gold offering. Abitibi Royalties intends to use the proceeds from
the sale to repurchase shares of the Company under its Normal Course
Issuer Bid ("NCIB"). Based on the last trading price of the Purchase
Rights (Cdn$0.295), the Company would receive approximately Cdn$65,450.
About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on the Odyssey North
discovery, Jeffrey Zone and the eastern portion of the Barnat Extension,
located 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 September 30, 2016) of Cdn$41.8 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.
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