TSXV: CAA
VANCOUVER, Oct. 24, 2013 /CNW/ - Callinan Royalties
Corporation ("Callinan", the "Company") (TSXV: CAA) announces that
it has signed an Exploration Alliance Agreement (the "Agreement")
with Renaissance Gold Inc. ("RenGold") (TSX: REN). The
purpose of the Agreement is to fund prospect generation activities
in order for RenGold to attract joint venture partners to projects,
while allowing Callinan to generate and acquire royalties.
The initial geographic focus will be southern
Nevada but may expand to other
jurisdictions. The Agreement will be for an initial three year term
and calls for Callinan to fund $150,000 of generative exploration during the
first year of the Agreement with the option to fund up to
$100,000 in each of the two
subsequent years.
In return for such funding, RenGold will grant
Callinan the option to receive a 0.5% Net Smelter Returns ("NSR")
royalty on any new projects acquired as a result of the generative
exploration work. Alternatively, Callinan has the option of funding
an additional $150,000 on any of the
new projects in exchange for a 1.5% NSR royalty.
If RenGold proposes that additional value can be
generated after spending $150,000,
Callinan may elect to contribute subsequent funding with RenGold on
an equally shared basis with no change to Callinan's royalty
interest. RenGold may also propose exploration on RenGold's
existing mineral properties. Callinan will have the option to
fund $150,000 in exploration on those
projects in return for a 1.5% NSR royalty.
Callinan is supporting the prospect generation
business model as a means to create royalties in prospective areas
through agreements with companies such as Renaissance that are
established prospect generators and have demonstrated expertise in
their chosen jurisdictions.
On Behalf of the Board of Directors,
Roland
Butler
Roland Butler,
CEO
About Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver
exploration company that has a large portfolio of exploration
projects in Nevada, Utah, Argentina and Spain. Many of the projects are in exploration
earn-in agreements with industry partners who provide exploration
funding. RenGold applies the extensive exploration experience and
high-end technical skills of its founders and team members to
search for and acquire new precious metal exploration projects that
are then offered for joint venture.
For additional information, please visit
www.rengold.com.
About Callinan Royalties
Callinan Royalties is a Canadian company that
creates and acquires mineral royalties. The company uses its
royalty income to provide alternative financing options to mineral
exploration and development companies with attractive
projects. Callinan's strategy is to create shareholder value
over the long term by generating a portfolio of profitable mineral
royalties.
The Corporation currently has two producing
royalties. Callinan holds a 6⅔% net profits interest royalty and a
$0.25 per ton production royalty on
lands that include the 777 mine and 777 North mine owned by Hudbay
Minerals Inc. located in Flin Flon,
Manitoba, Canada. Callinan also holds the 777 Deeps
(War Baby) property and an associated royalty option on the
property, which is located adjacent to the 777 mine.
Callinan is a dividend paying Tier 1 company
listed on the TSX Venture Exchange under the symbol CAA. The
Corporation has a strong financial position with no debt,
approximately $25 million in cash and
approximately 49.4 million shares outstanding.
Cautionary Statement on Forward-Looking Information
Neither the 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. Certain of the
information presented in this News Release may constitute
"forward-looking statements" or "forward-looking information"
within the meaning of Canadian securities legislation (together
referred to as "forward-looking statements"). The forward-looking
statements are subject to risks, uncertainties and other factors
that may cause actual results to be materially different from those
expressed or implied by such forward-looking statements, including
any delays in the receipt of consents or approvals. Although
Callinan Royalties has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or 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 contained in this News
Release and in any document referred to in this News Release.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date the statements are made and
Callinan Royalties undertakes no obligation to update
forward-looking statements if these beliefs, estimates and opinions
or other circumstances should change, except as required by
applicable law.
SOURCE Callinan Royalties Corporation