Abitibi Royalties Announces Intention to Conduct a Normal Course Issuer Bid
Val-d’Or, Québec, September 21st, 2015 – Abitibi Royalties Inc. (RZZ-TSX-V: “Abitibi Royalties” or the “Company”) announces that it intends to make a normal course issuer bid (a "NCIB") to purchase through the facilities of the TSX Venture Exchange (the "TSX-V") up to 546,300 issued common shares of Abitibi Royalties (the "Common Shares") (representing 5% of the total issued and outstanding Common Shares as of September 21, 2015) over a period of twelve months commencing after receipt of TSX-V acceptance.
“Reducing our share total from the already limited 10.9 million shares has been one of our stated objectives. We believe share buybacks present the best use of shareholders capital when the trading price of a company’s shares, conservatively calculated, is significantly below management’s estimated after tax net present value. The objective is to pay $1 for $2 worth of assets in order to benefit the owners of the Company over the long term. I believe it’s better to buy more of an asset you know at a discount than paying a large premium for someone else’s company,” stated Ian Ball, President and CEO.
The NCIB was approved by the Company's board of directors; however, it is subject to acceptance by the TSX-V and, if accepted, will be made in accordance with the applicable rules and policies of the TSX-V and applicable Canadian securities laws. Under the NCIB, Common Shares may be repurchased in open market transactions on the TSX-V or by such other means as may be permitted by the TSX-V and under applicable Canadian securities laws. The price paid by Abitibi Royalties will be based on the market price at the time of purchase and not higher than the last independent trade of a board lot (board lot = 100 shares).
In accordance with TSX-V policy, purchases by Abitibi Royalties under the NCIB are limited, when aggregated with the total of all other purchases in the preceding 30 days, to a maximum of 2% of the Company’s issued and outstanding shares at the time the purchases are made.
Common Shares that are purchased under the NCIB will be cancelled.
TD Securities Inc. will be conducting the NCIB on behalf of the Company.
The actual number of Common Shares which may be purchased and the timing of such purchases will be determined by the Company. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors including other options to expand our portfolio of assets.
About Abitibi Royalties Inc.
Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, the Jeffrey Zone and the eastern portion of the Barnat Extension Zone 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 and it holds 100% title to the Luc Bourdon and Bourdon West Prospects in the Ring of Fire, Ontario. The Company owns 3,549,695 shares of Yamana Gold, 444,197 shares of Agnico Eagle, approximately $1.8 million in cash and no long-term debt.
Golden Valley Mines and Rob McEwen hold approximately 51.3% and 8.7% interest in Abitibi Royalties, respectively.
For additional information, please contact:
Ian J. Ball
President & CEO
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.