Val-d'Or, Québec--(Newsfile Corp. - August 10, 2020) - Abitibi Royalties Inc. (TSXV: RZZ) OTC: ATBYF) ("Abitibi Royalties" or the "Company") announces that it has entered into an option agreement with Victory Resources Corporation ("Victory Resources") on the Hammond Reef South Project, which adjoins Agnico Eagle's Hammond Reef Project in Northwestern Ontario (Fig. 1 & 2).
Victory Resources may earn a 100% interest in the project (subject to a 2% NSR payable to Abitibi Royalties) and subject to receiving regulatory approval, by making the following cash and share payments, including exploration commitments:
Cash and Share Payments
Option Agreement Signing: 500,000 Victory Resources common shares and CDN$50,000 cash
Year 1 Anniversary: 750,000 Victory Resources common shares and CDN$75,000 cash
Year 2 Anniversary: 1,500,000 Victory Resources common shares and CDN$150,000 cash
On or Before Year 1 Anniversary: CDN$100,000 (CDN$25,000 firm commitment)
On or Before Year 2 Anniversary: CDN$150,000
On or Before Year 3 Anniversary: CDN$300,000
Should Victory Resources complete the option earn-in, Abitibi Royalties would retain a 2% NSR on the Hammond Reef South Project. If the option were not exercised, Abitibi Royalties would retain 100% of the project.
The Hammond Reef South Project adjoins Agnico Eagle's Hammond Reef Project (Fig 1 & 2), which contains an open pit measured and indicated mineral resource of 208 million tonnes grading 0.67 gpt gold (containing 4.5 million ounces of gold), as well as open pit inferred mineral resource of 0.5 million tonnes grading 0.74 gpt gold (containing 12,000 ounces of gold), using a cut-off grade of 0.32 gpt, as of December 31, 2019 (see Agnico Eagle news release dated February 13, 2020 for further information). An Amended Environmental Assessment was submitted in January 2018 and the project subsequently received environmental approval from both Federal and Provincial agencies (see notice of approval dated May 16, 2019 on Agnico Eagle's website).
About Abitibi Royalties
Abitibi Royalties owns various royalties 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 is unique among its peers due to its strong treasury, no debt, monthly dividend, share buyback program and limited number of shares outstanding.
Michael P. Rosatelli, M.Sc., P.Geo. and senior geological consultant to the Company, is the Qualified Person (as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) who has reviewed and approved this news release.
For additional information, please contact:
Shanda Kilborn - Director, Corporate Development
2864 chemin Sullivan
Val-d'Or, Québec J9P 0B9
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 the source version of this press release, please visit https://www.newsfilecorp.com/release/61359