RZZ Abitibi Royalties Inc

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


Abitibi Royalties Inc. (TSX VENTURE:RZZ)(the "Company" or "Abitibi") is pleased
to announce that it has engaged Red Cloud Mining Capital Inc. ("Red Cloud") as a
non-exclusive independent contractor to provide strategic advisory services to
Abitibi, including advice in connection with proposed mergers, acquisitions,
divestitures and other such transactions, plus ongoing financial, strategic and
marketing advice to the Board and management as reasonably requested from time
to time.  


Pursuant to the advisory agreement entered into between Abitibi and Red Cloud,
Red Cloud will provide the advisory services outlined in the agreement for a
period of six months for a retainer fee to be satisfied by, subject to prior
approval by the TSX Venture Exchange, the issuance of 50,000 common shares in
the capital of Abitibi and reimbursement of out-of-pocket expenses reasonably
and properly incurred by Red Cloud in performing the services. In addition, the
Company will pay to Red Cloud a corporate finance bonus plus applicable taxes,
payable in cash or shares at the discretion of Abitibi, subject to prior
Exchange approval, in the event of a successful transaction completed by the
Company (an "M&A Transaction") based on the value of such transaction. 


Chad Williams, a director of Abitibi, is also the President of Red Cloud. The
Red Cloud Agreement provides that in the event Abitibi completes an M&A
Transaction during the term of the Red Cloud Agreement and Mr. Williams, in his
capacity as a director of Abitibi, becomes entitled to a bonus and/or a success
fee payable by Abitibi with respect to such an M&A Transaction, any corporate
finance bonus payable to Red Cloud under the terms of the advisory agreement
with Abitibi with respect to that same M&A Transaction shall be reduced by the
amounts of any bonus and/or any success fee payable by Abitibi to Mr. Williams
in his capacity as a director. 


Shares issuable or that may become issuable by Abitibi in satisfaction of
compensation payable to Red Cloud under the terms of the advisory agreement and
any shares that may become issuable by Abitibi in satisfaction of any bonus
and/or success fee payable to Chad Williams constitute related party
transactions under TSX Venture Exchange Policy 5.9 and Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special Transactions.
Abitibi intends to rely on exemptions from the formal valuation and the minority
shareholder approval requirements of MI 61-101, subject to availability of such
exemptions once the value and specifics of the related party transactions are
known.


About Red Cloud Mining Capital Inc. 

Red Cloud is a 'new concept' capital markets advisory firm. Working as an
extension of management, we use our global network of capital markets
specialists and our extensive experience in the many facets of the business of
mining to help companies identify alternative sources of capital and quality
actionable growth opportunities, and to generate and maintain important
relationships with key investors.


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, Quebec which is the object of a joint venture with Osisko. 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.


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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Glenn J. Mullan
President
819-824-2808, x 204
glenn.mullan@goldenvalleymines.com

Abitibi Royalties (TSXV:RZZ)
Historical Stock Chart
From Apr 2024 to May 2024

Abitibi Royalties (TSXV:RZZ)
Historical Stock Chart
From May 2023 to May 2024