Source: Abitibi Royalties Inc.
Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi
Royalties" or the "Company") announces that it intends to conduct a
normal course issuer bid (the "2016 NCIB") to purchase through the
facilities of the TSX Venture Exchange (the "TSX-V") up to 566,812
issued common shares of Abitibi Royalties (the "Common Shares")
(representing 5% of Abitibi Royalties' issued and outstanding common
shares as of September 27, 2016) over a period of twelve months
commencing October 6, 2016. The NCIB is subject to final TSX-V
acceptance, which has been conditionally approved.
Under the NCIB, Common Shares may be repurchased in open
market transactions on the TSX-V or by such other means as may be
permitted by the TSX-V and under applicable Canadian securities laws.
The price paid by Abitibi Royalties will be based on the market price at
the time of purchase and not higher than the last independent trade of a
board lot (board lot = 100 shares).
In accordance with TSX-V policy, purchases by Abitibi
Royalties under the 2016 NCIB are limited, when aggregated with the
total of all other purchases in the preceding 30 days, to a maximum of
2% of the Company's issued and outstanding shares at the time the
purchases are made.
Common Shares that are purchased under the 2016 NCIB will be cancelled.
TD Securities Inc. will be conducting the 2016 NCIB on behalf of the Company.
The actual number of Common Shares which may be purchased and
the timing of such purchases will be determined by Abitibi Royalties.
Decisions regarding purchases will be based on market conditions, share
price, best use of available cash, and other factors including other
options to expand our portfolio of assets.
Abitibi Royalties has purchased to date an aggregate of
77,600 of its issued common shares through the facilities of the TSX-V
under a normal course issuer bid (the "2015 NCIB") currently being
conducted by the Issuer, which commenced October 6, 2015 and will end on
October 5, 2016. Common shares purchased to date by the Issuer under
the 2015 NCIB were purchased at an average price of CDN$3.19 per common
share. The 77,600 common shares purchased to date under the 2015 NCIB
have been returned to the Issuer's treasury and 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,
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 CDN$52.2 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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