TORONTO, ONTARIO -- (Marketwired) -- 08/18/17 -- Routemaster Capital Inc. (TSX VENTURE: RM) ("Routemaster" or the "Company") has completed its acquisition of a 2.0% net smelter return royalty covering former producing gold mines in the Province of Quebec. In consideration for this royalty, Routemaster has issued to Forbes & Manhattan, Inc. (the "Vendor") a total of 11,000,000 common shares, which represents approximately 34.9% of the outstanding Routemaster shares. Details regarding this acquisition can be found in the Company's press release of April 9, 2017 and its management information circular of June 21, 2017. These Routemaster common shares are subject to a statutory hold period of four months and a day.
The Quebec gold royalty is a 2.0% net smelter returns royalty covering approximately 10,794 hectares in the Val d'Or region of Quebec (the "Quebec Gold Royalty"). QMX Gold's Val d'Or Mining Camp property is located on the southeastern portion of the historic Abitibi belt, one of the world's most prolific mining districts. The royalty underlies ground that includes at least three formerly producing gold mines, including Ferderber and Lac Herbin. Most recently, gold was mined by QMX Gold at the Lac Herbin mine until 2016 and approximately $1.5 million was payable by QMX Gold in respect of this royalty between 2013 and 2016.
Routemaster continues to complete its due diligence review of a 1.5% royalty in respect of a potash project in Ethiopia. In connection with its purchase of the Quebec Gold Royalty, Routemaster also obtained an option to acquire this Ethiopian potash royalty. At the recent Routemaster shareholders meeting, shareholders approved the issue to an affiliate of the Vendor of 5,000,000 Routemaster shares if the Routemaster board decides to exercise this option. This purchase option expires on October 5, 2017.
Finally, Routemaster has also obtained a 24-month right of first refusal to acquire additional royalties and streaming interests held by the Vendor. The Vendor has a global network of resource companies and contacts through which it has created and fostered several resource companies with billion-dollar market capitalizations. Through this right of first refusal and the Vendor's significant shareholding, Routemaster believes it has secured access to the Vendor's network thereby providing Routemaster shareholders with a potential pipeline of accretive investments.
About Routemaster Capital Inc.:
Routemaster Capital Inc. is a Canadian investment company that carries on business with the objective of enhancing shareholder value.
FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements, including statements regarding the value and prospective nature of the projects underlying the royalties" ability to compile a portfolio of royalties or streaming interests, future acquisitions and opportunities of the Company" the Company's access to the Vendor's network and the ability of the Company to attract required financing. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf, except as required by applicable law.
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 RELEASE.
Contacts:
Fred Leigh
President and Chief Executive Officer
Tel: +1 (416) 861-5933
