Abitibi Royalties Inc.
TSX VENTURE : RZZ

Abitibi Royalties Inc.

July 08, 2014 09:30 ET

Abitibi Royalties Announces $2,000,000 Private Placement Financing With Rob McEwen

VAL-D'OR, QUÉBEC--(Marketwired - July 8, 2014) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi" or the "Company") announces that it will conduct a non-brokered private placement offering pursuant to which it will issue 800,000 shares (each a "Share") at a per Share price of $2.50 for gross proceeds of $2,000,000. Rob McEwen will be the sole subscriber for this offering and will also be granted a right to maintain his pro-rata ownership in the Company on future financings.

After completion of the private placement, Rob McEwen will own 951,515 shares or 9.28% of Abitibi Royalties, becoming the Company's second largest shareholder after Golden Valley Mines (TSX VENTURE:GZZ).

"We are pleased that Rob McEwen has agreed to significantly increase his ownership in the Company, becoming a key strategic investor. This financing places Abitibi Royalties in a good financial position as it waits for cash flow to begin from its 2% NSR on the Gouldie Zone at the Canadian Malartic Mine and additional drill results from the Odyssey North Zone discovery located on the Malartic CHL property, where the Company has a 30% Free-Carried interest to production, and is located next to the Canadian Malartic mine," stated Glenn Mullan, Chairman and CEO.

No finder's fees will be payable, or warrants issuable, in connection with the offering. The offering is subject to acceptance by the TSX Venture Exchange. The proceeds raised from this offering will be used by Abitibi for general corporate purposes. All securities issued will be subject to a hold period of four months and one day from the date of closing of the offering in accordance with applicable securities legislation.

About Abitibi Royalties Inc.

Abitibi Royalties holds 100% title to the Luc Bourdon and Bourdon West Prospects in Ontario and a 30% free-carried interest as well as other rights on the Malartic CHL Property near Val-d'Or, Québec. In addition, the Company holds a 2% net smelter royalty interest in one additional claim held by Canadian Malartic GP, and may acquire and generate other property and royalty interests.

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.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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