Source: Abitibi Royalties Inc.
Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi
Royalties" or the "Company") announces that Yamana Gold Inc. ("Yamana")
has recently disclosed that its wholly owned subsidiary, Brio Gold Inc.
("Brio Gold"), has filed a preliminary prospectus with the securities
regulatory authorities in each of the provinces and territories of
Canada in connection with qualifying a secondary offering (the
"Offering") of Brio Gold common shares held by Yamana, which will be
transferred to purchasers through and subject to the exercise of
purchase rights (the "Purchase Rights"). Yamana intends to distribute
the Purchase Rights to its shareholders as a dividend in-kind. The
Purchase Rights shall provide shareholders with an opportunity to
purchase from Yamana a portion of its Brio Shares or the option of
selling their Purchase Rights. Abitibi Royalties owns 3,549,695 shares
in Yamana and is expected to receive Purchase Rights in connection with
the Offering. Abitibi Royalties will inform its shareholders of the
Company's decision to participate in the Offering or sell its Purchase
Rights once more information becomes available.
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 June 30, 2016) of approximately CDN$47.2 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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