Scottie Resources Corp. (TSX-V: SCOT) (OTCQB: SCTSF) (FSE:SR8) is pleased to announce that it has closed the previously announced financing arrangement with Franco-Nevada Corporation (TSX:FNV) (NYSE: FNV).

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 to Franco-Nevada for C$8,100,000. 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 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. 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 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. 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.