Frontline Gold (FGC-V) Abitibi Royalties (RZZ-V) July 6, '16 is pleased to announce that it has entered into a binding Letter of Intent with Frontline Gold Corp. (“Frontline”) to acquire an additional 1% net smelter royalty (“NSR”) on its Menderes Gold Project, increasing the Company’s NSR interest to 3%. The Menderes Gold Project surrounds Eldorado Gold Corporation’s Efemcukuru gold mine in Turkey on three sides ( Fig. 1).
Additional 1% NSR’s Purchased on Menderes Gold Project ( Fig. 1)
In exchange for the additional 1% NSR on the 6,194 hectare Menderes Gold Project, Abitibi Royalties has paid Frontline Cdn$20,000. Abitibi Royalties will pay the cash consideration from its treasury. The Company’s NSR interest on the Menderes Gold Project now totals 3%.
Frontline Gold’s Proposed Exploration Program
Frontline has informed the Company that it intends to begin a 2,000-3,000 metre exploration drill program at the Menderes Gold Project in September-October 2016. The proposed exploration program includes 5 drill holes that would target possible extensions of the veins found at Eldorado’s Efemcukuru gold mine.
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 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 that have an approximate market value of CDN$56.2 million and approximately CDN$2.9 million in cash (as reported on June 2, 2016). The Company is debt free.
Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.4% and 12.3% interest in Abitibi Royalties, respectively.
For additional information, please contact:
Ian J. Ball
President & CEO
2864 chemin Sullivan?
Val-d’Or, Québec J9P 0B9?
Tel.: 416-346-4680
Email: ian.ball@abitibiroyalties.com |
