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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.