ROYALTIES ACQUIRED NEAR GOLDCORP'S RED LAKE MINE & PURE GOLD'S MADSEN MINE
Abitibi Royalties Inc. (RZZ-TSX-V: "Abitibi Royalties" or the "Company") is pleased to announce that the Company has partnered with AuRico Metals Inc. ("AuRico") for the purpose of entering into an agreement with Frontline Gold Corporation ("Frontline") that allows each company to acquire a 1% net smelter royalty ("NSR") on several early stage exploration projects in the Red Lake district. The exploration projects are located south of Goldcorp's Red Lake mine, with the largest claim package adjoining Pure Gold's Madsen mine to the east and south.These acquisitions will build on the Company's Red Lake royalty portfolio, which also includes a 2% NSR on the White Horse Island Project (also owned by Frontline), situated between the Goldcorp / Premier Gold Rahill-Bonanza Gold Property and Premier Gold's Hasaga Gold Property (Fig. 1). A total of fourteen royalties have now been purchased near existing mines since the Company's "Royalty Search" was launched in June 2015 (http://www.abitibiroyalties.com).
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.
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