Scottie Resources Announces Financing Package with Franco-Nevada Corporation
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER BC, April 2, 2024 /CNW/ - Scottie Resources Corp. (TSXV: SCOT) (OTCQB: SCTSF) (FSE: SR8) ("Scottie" or the "Company") is pleased to announce that it has entered into a financing arrangement with Franco-Nevada Corporation (TSX: FNV) (NYSE: FNV) ("Franco-Nevada") whereby Scottie has agreed to sell a 2.0% gross production royalty (the "Royalty") to Franco-Nevada for C$8,100,000 (the "Royalty Transaction"). The Royalty will apply to all minerals produced on Scottie's claims in the Stewart Mining Camp in the Golden Triangle.
In addition, Franco-Nevada has agreed to purchase common shares of the Company comprising the entire back-end of an aggregate C$1,500,000 charity flow-through private placement at a price to flow-through subscribers of C$0.275 per flow-through common share of the Company (the "Private Placement").
President and CEO, Brad Rourke commented: "We are happy to welcome Franco-Nevada as a shareholder and stakeholder of Scottie. This transaction validates the progress we've made and recognizes the value opportunity present at Scottie. With the funding from Franco-Nevada and the proceeds raised from our January private placement, Scottie is in a strong financial position for future operations."
The Private Placement remains subject to TSX Venture Exchange approval, and all securities issued in the Private Placement will be subject to a four-month hold period, during which time the securities may not be traded, other than pursuant to prospectus exemptions. The Company intends to use the gross proceeds raised from the Private Placement for exploration and related programs on the Company's Scottie and Blueberry mineral properties. Further, each of the Royalty Transaction and the Private Placement remain subject to satisfaction of closing conditions customary for transactions of this nature.
Scottie owns a 100% interest in the Scottie Gold Mine Property which includes the Blueberry Zone and the high-grade, past-producing Scottie Gold Mine. Scottie also owns 100% interest in the Georgia Project which contains the high-grade past-producing Georgia River Mine, as well as the Cambria Project properties and the Sulu property. Altogether Scottie Resources holds more than 60,000 hectares of mineral claims in the Stewart Mining Camp in the Golden Triangle.
The Company's focus is on expanding the known mineralization around the past-producing mines while advancing near mine high-grade gold targets, with the purpose of delivering a potential resource.
All of the Company's properties are located in the area known as the Golden Triangle of British Columbia which is among the world's most prolific mineralized districts.
Neither 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.
This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things, completion of the Offering, the use of proceeds from the Offering and the payment of finders' fees under the Offering.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, the Company not receiving the necessary regulatory approvals in respect of the Offering; recent market volatility; and the state of the financial markets for the Company's securities.
In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, that the Company will receive the necessary regulatory approvals in respect of the Offering.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
SOURCE Scottie Resources Corp.
Brad Rourke, President and CEO, +1 250 877 9902, [email protected]; Gordon Robb, Business Development, +1 250 217 2321, [email protected]
Share this article