Abitibi Royalties Announces Further Update Following Court Hearing to Enforce Contractual Rights
June 16 2014 - 2:04PM
Marketwired
Abitibi Royalties Announces Further Update Following Court Hearing
to Enforce Contractual Rights
VAL-D'OR, QUEBEC--(Marketwired - Jun 16, 2014) - Abitibi
Royalties Inc. (TSX-VENTURE:RZZ) ("Abitibi Royalties" or the
"Company") is pleased to provide a further update on its actions to
protect the Company's rights with respect to the Malartic CHL
Property. On June 9, 2014, the Company's lawyers made submissions
at the hearing for final approval of the plan of arrangement among
Osisko Mining Corporation ("Osisko"), Agnico Eagle Mines Limited
and Yamana Gold Inc. dated April 16, 2014 (the "Plan of
Arrangement"). The Plan of Arrangement was approved by the Court,
after hearing Abitibi Royalties' arguments and after ordering that
certain modifications be made to the Plan of Arrangement as a
result of such arguments.
As announced in the Company's June 6, 2014 news release, the
Plan of Arrangement was amended to reflect that the Malartic CHL
Property is not being transferred to the partnership along with the
other Canadian Malartic assets and will be retained by Osisko and
that the proposed 5% NSR to be granted on the Canadian Malartic
assets does not include the Malartic CHL Property. In addition,
Osisko undertook not to transfer the Malartic CHL Property without
first notifying Abitibi Royalties.
Abitibi Royalties also advised the Court that, at this stage in
the proceedings, its primary claim is that Osisko has triggered
Abitibi Royalties' right to re-acquire Osisko's 70% interest in the
Malartic CHL Property, where recent exploration drilling has
returned significant gold mineralization at the Odyssey Zones, as
referenced in Abitibi Royalties' news release of April 23,
2014.
On June 13, 2014, the Québec Superior Court ordered that Abitibi
Royalties' claims, and most importantly, whether Abitibi Royalties
is entitled to a right of first refusal on Osisko's interest in the
Malartic CHL Property as a result of Osisko's actions, be sent to
arbitration without costs to either party, with the detailed
reasoning for this decision to follow. Abitibi Royalties will
carefully consider the Court's reasons once they have been received
and will consider all of its options at that time in order to
protect all of its rights and interests in the Malartic CHL
Property.
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
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 Osisko, and may acquire and generate other
property and royalty interests.
Golden Valley Mines Ltd. holds an approximate 62.7% interest in
Abitibi Royalties Inc.
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.
Abitibi Royalties Inc.Glenn J. MullanPresident819-824-2808, x
204glenn.mullan@goldenvalleymines.comAbitibi Royalties Inc.2864
chemin SullivanVal-d'Or, Québec J9P 0B9
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