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Abitibi Royalties Acquires Hammond Reef South Project

Jun 17, 2020

Abitibi Royalties Inc. has entered into an agreement to acquire the Hammond Reef South Project, which adjoins Agnico Eagle's Hammond Reef Project in Northwestern Ontario. 

Agnico Eagle's Hammond Reef Project contains an open pit measured and indicated mineral resource of 208 million tonnes grading 0.67 gpt gold (containing 4.5 million ounces of gold), as well as open pit inferred mineral resource of 0.5 million tonnes grading 0.74 gpt gold (containing 12,000 ounces of gold), using a cut-off grade of 0.32 gpt, as of December 31, 2019. An Amended Environmental Assessment was submitted in January 2018 and the project subsequently received environmental approval from both Federal and Provincial agencies. 

The Hammond Reef South Project was acquired from a group of private investors for CDN$70,000 and a 0.5% net smelter royalty ("NSR"). The purchase price will be paid in cash by Abitibi Royalties. The project was acquired due to the properties' favourable geology and limited exploration. 

About Abitibi Royalties

Abitibi Royalties owns various royalties 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 is unique among its peers due to its strong treasury, no debt, new monthly dividend, share buyback program and limited number of shares.

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