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3/15/16

Abitibi Royalites (RZZ.v): Glenn Mullan loses his cash cow...or not

Back in June 2015 IKN did its part in shining the light on yet another smallprint scam in the Canadian capital markets with this post on Abitibi Royalties (RZZ.v) (which by the way Mister Ball, has had a whole bucketload of hits in the months since then) that pointed to the "Management Success Fee" clause held over the company by Glenn J. Mullan which was a total rip-off scam (quel surprise).


VAL-D'OR, QUÉBEC--(Marketwired - March 15, 2016) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) "Abitibi Royalties" or the "Company") announces that the Board of Directors, after continued consultations with various stakeholder groups, has terminated the Management Success Fee Agreement as described in the Company's Management Information Circular dated May 15, 2015, prepared in connection with the Company's annual general and special meeting of shareholders held on June 25, 2015. Approximately $132,000 had been paid under the Management Success Fee Agreement, with no further amounts payable.

The Company, through its Board of Directors on recommendations from the Compensation and Corporate Governance Committee, intends to compensate its officers, directors, employees and consultants through conventional means including salaries or management or consulting services fees, bonuses, as well as awards under the Company's Restricted Share Unit Plan as previously approved by shareholders and the TSX-Venture Exchange. The Company has 824,269 Restricted Share Units available for issuance.

So that first paragraph sounds pretty shareholder friendly, the Mullan cash cow goes away, right? But then the second paragraph comes along and the fudge begins. You'll note that the bold and direct statements of para 1 are eschewed, in their place hints and suggestions and potentials that allude to something else.

In other words, betcha Mullan has still got a sweet deal. And Ian Ball just wants this whole thing to go away. And it won't.