VAL-D’OR, Québec, July 04, 2018 (GLOBE NEWSWIRE) -- Abitibi Royalties Inc. (TSX-V: RZZ ) (OTC – Nasdaq Intl:ATBYF) “Abitibi Royalties” or the “Company”) announces that it has entered into an agreement with an arm’s length, third party seller, in order to acquire a 2% net smelter royalty (“NSR”) on the Revillard property, located approximately 10 kilometres northwest of the Canadian Malartic Mine in Québec. The Revillard property forms part of a larger set of claims known as the Malartic Project, which is under option by Dundee Precious Metals (“Dundee”) (Fig. 1) . The purchase price paid by the Company totals USD$50,000 (CDN$65,750), which will be paid in cash and from the Company’s treasury.
The Revillard claims are currently part of a larger option agreement on the Malartic Project between Dundee and Pershimex Resources (“Pershimex”). Under the terms of the option agreement (Dundee news release July 4, 2017), Dundee can earn an initial 51% interest in the Malartic Project in exchange for certain cash payments totaling CDN$412,500, the issuance of an aggregate of 70,000 common shares of Dundee and making expenditures on the property aggregating CDN$2,500,000 within three years of the effective date of the option agreement. Thereafter, Dundee will have a further option to increase its interest to 71% by incurring an additional CDN$3,500,000 in expenditures on the property within three years. During the option period, Dundee will be the operator of the Malartic Project.
During Q1 2018, an initial 1,942 metre scout drilling program was completed at the Malartic Project by Dundee. The scout drilling program was primarily designed to characterize the various targets that were defined from mapping and geophysical work completed in 2017. Sampling and detailed logging of the drill core and integration of new drilling data into the geological model was scheduled to take place during Q2 2018.
Information contained in this news release is based on public disclosure made by Dundee and Pershimex and without independent verification.
About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on portions of the Odyssey Project, East Malartic, Jeffrey Zone, eastern portions of the Barnat Extension and a 2% NSR on portion 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 has approximately CDN$43.5 million 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 Tel.: 1-888-392-3857 Email: info@abitibiroyalties.com |
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.
Fig. 1 Abitibi Regional Map – Abitibi Royalties NSR Holdings
