LA CAISSE MAKES INVESTMENT IN ABITIBI ROYALTIES
Val-d'Or, Québec, June 29th, 2018 – Abitibi Royalties Inc. (RZZ-TSX-V, ATBYF-OTC-Nasdaq Intl: "Abitibi Royalties" or the "Company") is pleased to announce that la Caisse de dépôt et placement du Québec (CDPQ) has made a strategic investment in Abitibi Royalties by purchasing 588,235 common shares (approximately 4.7% of the outstanding shares) of the Company.
"This investment allows us to take an important step in our growth plan. With la Caisse's financial support and backing, we now have a solid partner with extensive knowledge of Québec's mining sector, assets that will help us create value and accelerate our growth." Stated Ian Ball, President and CEO.
In order to facilitate the investment by CDPQ, certain members of the board, management and consultants who held stock options and restricted share units ("RSUs") in the Company have agreed to sell, through a private transaction, the taxable portion (tax due on exercise of the stock options or conversion of the RSUs into common shares) of these underlying securities to CDPQ, while at the same time having each person meaningfully increase their respective ownership in the Company by retaining the after tax portion of these shares (Table 1). The after-tax portion of the RSU's shares will be held in escrow until February 4, 2019 and/or March 19, 2019. The Company is also terminating its RSU Plan, thereby eliminating the remaining 313,404 RSUs that were available for issuance. In addition, the Company has not renewed its Stock Option Plan and has not granted stock options under the current plan since September 2014, thereby resulting in the Company having no further equity compensation plans in place.
In addition to retaining his after-tax portion of RSUs and stock options as part of the CDPQ investment, Ian Ball, President and CEO, is making an additional investment of approximately CDN$156,200 into the Company, consistent with him investing the after-tax portion of his salary and bonus, which he has done for each of the past four years.
Table 1. Ownership in Abitibi Royalties
|Name||Position in Abitibi Royalties||Ownership Pre-Investment CDPQ||Ownership Post-Investment CDPQ|
|Ian Ball||CEO, President & Director||145,560||253,652|
|Daniel Poisson||Corporate Secretary||4,200||6,700|
|Shanda Kilborn||Director, Corporate Development||5,770||6,808|
|% Outstanding Shares||5.90%||9.70%|
About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on portions of the Odyssey Project, East Malartic, Jeffrey Zone, eastern portions of the Barnat Extension and a 2% NSR on portion 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 has approximately CDN$41.8 million in cash and securities and is debt free.
For additional information, please contact:
Shanda Kilborn – Director, Corporate Development
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.