Update on Investment Portfolio
Quebec, Oct 20, 2016 AEST (ABN Newswire) - Abitibi Royalties Inc. (CVE:RZZ
) ("Abitibi Royalties" or the "Company") announces that Yamana Gold Inc. ("Yamana") has recently disclosed that its wholly owned subsidiary, Brio Gold Inc. ("Brio Gold"), has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with qualifying a secondary offering (the "Offering") of Brio Gold common shares held by Yamana, which will be transferred to purchasers through and subject to the exercise of purchase rights (the "Purchase Rights"). Yamana intends to distribute the Purchase Rights to its shareholders as a dividend in-kind. The Purchase Rights shall provide shareholders with an opportunity to purchase from Yamana a portion of its Brio Shares or the option of selling their Purchase Rights. Abitibi Royalties owns 3,549,695 shares in Yamana and is expected to receive Purchase Rights in connection with the Offering. Abitibi Royalties will inform its shareholders of the Company's decision to participate in the Offering or sell its Purchase Rights once more information becomes available.
Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.4% and 12.3% interest in Abitibi Royalties, respectively.
About Abitibi Royalties Inc.
Abitibi Royalties Inc. (CVE:RZZ) holds a 3% NSR on the Odyssey North discovery, Jeffrey Zone and the eastern portion of the Barnat Extension, located inside the Malartic CHL property 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 (market value), plus cash (as of September 30, 2016) of Cdn$41.8 million. The Company is debt free.
Related CompaniesAbitibi Royalties Inc.