Source: Abitibi Royalties Inc.
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.
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