Abitibi Royalties (RZZ-V) July 9, '14 Rob McEwen will be the sole subscriber of $2 million.
Abitibi Royalties announces that it will conduct a non-brokered private placement offering pursuant to which it will issue 800,000 shares (each a “Share”) at a per Share price of $2.50 for gross proceeds of $2,000,000. Rob McEwen will be the sole subscriber for this offering and will also be granted a right to maintain his pro-rata ownership in the Company on future financings. After completion of the private placement, Rob McEwen will own 951,515 shares or 9.28% of Abitibi Royalties, becoming the Company’s second largest shareholder after Golden Valley Mines (GZZ-TSX-V).
“We are pleased that Rob McEwen has agreed to significantly increase his ownership in the Company, becoming a key strategic investor. This financing places Abitibi Royalties in a good financial position as it waits for cash flow to begin from its 2% NSR on the Gouldie Zone at the Canadian Malartic Mine and additional drill results from the Odyssey North Zone discovery located on the Malartic CHL property, where the Company has a 30% Free-Carried interest to production, and is located next to the Canadian Malartic mine,” stated Glenn Mullan, Chairman and CEO.
No finder’s fees will be payable, or warrants issuable, in connection with the offering. The offering is subject to acceptance by the TSX Venture Exchange. The proceeds raised from this offering will be used by Abitibi for general corporate purposes. All securities issued will be subject to a hold period of four months and one day from the date of closing of the offering in accordance with applicable securities legislation.
About Abitibi Royalties Inc.
Abitibi Royalties holds 100% title to the Luc Bourdon and Bourdon West Prospects in Ontario and a 30% free-carried interest as well as other rights on the Malartic CHL Property near Val-d’Or, Québec. In addition, the Company holds a 2% net smelter royalty interest in one additional claim held by Canadian Malartic GP, and may acquire and generate other property and royalty interests.
For additional information, please contact:
Glenn J. Mullan
Chief Executive Officer
2864 chemin Sullivan
Val-d’Or, Québec J9P 0B9
Tel.: 819-824-2808, x1222 |
