Scottie Resources Closes Financing Package with Franco-Nevada Corporation
Scottie Resources Closes Financing Package
with Franco-Nevada Corporation
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
April 15, 2024
/CNW/ -
Scottie Resources Corp.
(TSXV: SCOT) (OTCQB:
SCTSF) (FSE:SR8) ("
Scottie
" or the "
Company
") is pleased to announce that it has closed the
previously announced financing arrangement with Franco-Nevada Corporation (TSX, NYSE: FNV)
("
Franco-
Nevada
").
Further to the Company's new release dated
April 2, 2024
, Scottie has completed the sale and grant
of a 2.0% gross production royalty (the "
Royalty
") to Franco-Nevada for
C$8,100,000
(the "
Royalty
Transaction
"). The Royalty applies to all minerals produced on Scottie's claims in the Stewart
Mining Camp in the Golden Triangle, including those claims which are held under option by Scottie
and any claims subsequently acquired by Scottie within a customary area of interest around its
existing claims.
Franco-
Nevada
has also been granted the option to purchase an additional 0.5% gross production
royalty upon the decision by Scottie to proceed with construction of a project or acceptance by
Scottie of a project study on its properties (the "
Additional Royalty
"). The purchase price in respect
of the Additional Royalty will be determined at the time of exercise based on a net present value
calculation at consensus commodity prices. Franco-
Nevada
has been further granted a right of first
refusal to purchase any new royalty, streaming or similar interest in Scottie's properties which is
offered to be purchased by a third party. Any such subsequently granted interest, as well as the
Additional Royalty, may be subject to the approval of the TSX Venture Exchange once the final
terms are determined.
In addition, Scottie has closed a charity flow-through private placement of 5,422,994 flow-through
common shares of the Company for additional gross proceeds to Scottie of
C$1,491,323.25
, with
Franco-Nevada as the back-end buyer of common shares of the Company (the "
Private
Placement
", together with the Royalty Transaction, the "
Transaction
"). Following closing of the
Transaction, Scottie has a cash balance of
C$12.5 million
.
President and CEO,
Brad Rourke
commented: "We welcome Franco-Nevada as a new stakeholder
and shareholder of Scottie and recognize the strong validation that this investment brings to our
project and team. This financing package fully funds Scottie to execute a comprehensive 2024
exploration program and we look forward to building on the success of the 2023 program."
Agentis Capital Mining Partners ("
Agentis
") acted as financial advisor and Dumoulin Black LLP acted
as legal counsel to Scottie with regard to the Transaction. Agentis have been paid a cash fee of
$625,000
and have been granted 3,000,000 non-transferable common share purchase warrants (the
"
Advisory Warrants
"). Each Advisory Warrant is exercisable to purchase one common share of the
Company at a price of
$0.19
for a period of two years from issuance. Franco-
Nevada
and Agentis
are both Arm's Length Parties to the Company (as defined in the policies of the TSX Venture
Exchange).
The Transaction remains subject to final TSX Venture Exchange approval, and the Advisory
Warrants 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.
ABOUT SCOTTIE RESOURCES CORP
.
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.
Cautionary and Forward-Looking Statements
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, the Company's plans to complete a comprehensive 2024 exploration program, the
use of proceeds from the Private Placement and the receipt of final approval of the TSX Venture
Exchange in respect of the Private Placement.
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 Private Placement; recent market volatility; the state of the financial
markets for the Company's securities; and the risk that the Company will not use the proceeds of
the Private Placement or complete its comprehensive 2024 exploration program as anticipated.
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 Private Placement.
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.
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For further information:
Brad Rourke, President and CEO, +1 250 877 9902,
[email protected]; Gordon Robb, Business Development, +1 250 217 2321,
CO: Scottie Resources Corp.
CNW 17:10e 15-APR-24