Golden Valley Mines Grants 2% NSR on the Smokehead Prospect
July 28, 2015
Val-d’Or, Québec – Golden Valley Mines Ltd. (“Golden Valley” or the “Company”)(TSX-V:GZZ) announces that it has entered into a binding Letter of Intent for the grant to Abitibi Royalties Inc.of a 2% net smelter royalty (the “Smokehead NSR”) on the Smokehead Prospect, which is located approximately one kilometre southeast of the Canadian Malartic mine in Québec. Acquired by Golden Valley in May 2013, the Smokehead Prospect consists of two mineral claims totaling 97 hectares.
In exchange for the 2% Smokehead NSR, Abitibi Royalties will pay Golden Valley Cdn$5,000, which will be used towards paying annual maintenance fees associated with the claims. Abitibi Royalties also has a three year option to pay Golden Valley an amount equal to the annual claim maintenance fees required to maintain the Smokehead Prospect in good standing, in consideration for which the 2% Smokehead NSR will increase by 1% for each annual payment made on behalf of Golden Valley. In addition, Abitibi Royalties has agreed to pay Golden Valley an additional Cdn$5,000 in exchange for the right to receive 15% of total proceeds should the Smokehead Prospect be sold. No exploration has been completed to date by Golden Valley on the property.
As Abitibi Royalties has been a majority owned (currently 51.4%) subsidiary of Golden Valley since the reorganization of Golden Valley’s assets in July 2011, the acquisition of the Smokehead NSR constitutes a related party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and is subject to acceptance by the TSX Venture Exchange.
No finder’s fees are payable in connection with acquisition by Abitibi Royalties of the Smokehead NSR.
For additional information, please contact:
Glenn J. Mullan
Chairman, President, and CEO
Golden Valley Mines Ltd.
152, chemin de la Mine École
Val-d’Or, Québec J9P 7B6
Telephone: 819.824.2808 ext. 204
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.
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