Abitibi Royalties Announces Update on "The Royalty Search"- 2% NSR Purchased East of Bachelor Mine
VAL-D'OR, QUEBEC--(Marketwired - Jul 6, 2015) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to announce that it has entered into a binding Letter of Intent with Ivars Azis (the "Claim Holder") to acquire a 2% net smelter royalty ("NSR") on its mineral claims, located approximately 3.5 kilometres east of Metanor Resources Inc., Bachelor mine in Québec (Fig. 1).
2% NSR East of Bachelor Mine (Fig. 1)
The mineral claims consist of 280 hectares (Fig. 1). In exchange for the 2% NSR, Abitibi Royalties will pay the annual claim fees due in 2017 that is expected to total approximately Cdn$6,500. There is a mutual 3 year option between the Company and the Claim Holder for Abitibi Royalties to pay an amount equal to the annual claim maintenance fees required to maintain the mineral claims in good standing, in consideration for which the 2% NSR will increase by 1% for each annual payment made on behalf of the Claim Holder. In addition, Abitibi Royalties has agreed to pay the Claim Holder approximately Cdn$6,500 in exchange for the right to receive 15% of total proceeds should the property be sold. The cash consideration will be paid by Abitibi Royalties from its working capital.
The Claim Holder is actively searching for a partner in order to explore the mineral claims east of the Bachelor mine. To contact Ivars Azis, please visit www.tamarackgold.com or call 416.303.6684.
The Royalty Search
On June 9th, 2015, Abitibi Royalties launched "The Royalty Search". The Royalty Search (www.abitibiroyalties.com) is an easy to use website that allows mining companies and prospectors a quick way of accessing capital in this difficult commodities market.
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 a NSR on the property. Many claim holders are having a difficult time paying the fees associated with their property and face losing the mineral claims or they do not have the capital needed to stake new properties. To date, approximately 40 properties have been submitted through the website and 2 agreements have been finalized.
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 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 holds 100% title to the Luc Bourdon and Bourdon West Prospects in the Ring of Fire, Ontario. The Company owns 3,549,695 shares of Yamana Gold and 459,197 shares of Agnico Eagle Mines.
Golden Valley Mines and Rob McEwen hold approximately 53.3% and 8.7% interest in Abitibi Royalties, respectively.
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.
To view Figure 1, Location of 2% NSR east of Bachelor mine, please visit the following link: http://abitibiroyalties.com/maps/bachelor.jpg
Contact
Abitibi Royalties Inc.
Ian J. Ball
President & CEO
416-346-4680
ian.ball@abitibiroyalties.com
www.abitibiroyalties.com