TSXV: CAA
VANCOUVER,
Dec. 17, 2013 /CNW/ - Callinan
Royalties Corporation ('Callinan', the 'Company') (TSXV: CAA)
announces continuation of its normal course issuer bid and reports
on corporate developments.
Normal Course Issuer Bid
Callinan announces that it proposes to extend
into 2014 its normal course issuer bid (the "Bid") subject to
approval of the TSX Venture Exchange ("TSXV") and has filed a
further Notice of Intention to Make a Normal Course Issuer
Bid with the TSXV.
Under the Bid in 2014, up to 2,451,156 of its
common shares may be purchased through the facilities of the TSXV
and any such purchases will be at market prices. The Bid will
commence on or after January 1, 2014
and will end on December 31, 2014 or
on such earlier date as Callinan may complete its purchases
pursuant to the Bid or as it may otherwise determine.
Callinan is continuing to engage in the Bid
because it believes that the market price of its common shares from
time to time does not properly reflect its underlying value.
Purchases pursuant to the Bid will be conducted through Haywood
Securities Inc. Under the Bid in 2013, Callinan has purchased
459,300 shares to date at an average price of $1.72 for cancellation.
Litigation Update
The Company has filed an amended statement of
claim in the Manitoba Court of
Queen's Bench in its law suit against Hudson Bay Mining &
Smelting Co. Ltd., a subsidiary of Hudbay Minerals Inc. ("Hudbay").
See Callinan's news release dated
August 26, 2013 and Callinan's
website for details.
The amended statement of claim will seek
additional damages arising from the improper destruction of
documents and financial records by Hudbay which effectively
prohibited Callinan from conducting an independent audit of
Hudbay's records as was agreed with Hudbay.
The Company has been informed by its legal
counsel that Hudbay indicated that it will consent to the amendment
on a without prejudice basis. The next step will be a further
affidavit of documents dealing with the new issues followed by
scheduling of examinations for discovery. Callinan is vigorously
pursuing the litigation and will promptly report material
developments.
Shareholder Update
The new board of directors of Callinan has
requested that the Corporate Governance and Executive Compensation
Committee review and recommend adjustments to compensation levels.
Other expenditures throughout the company are being reviewed for
reductions. Callinan will be moving to a new office address in
Vancouver in early 2014.
Contact details will be posted on Callinan's website.
Altius Minerals Corporation has recently
reported in its quarterly filings on SEDAR that it has been
acquiring equity stakes in two public royalty companies including
Callinan Royalties. Altius reported that it holds 2,901,000 shares
representing approximately 5.9% of the outstanding shares of
Callinan.
On Behalf of the Board of Directors,
Roland Butler
Roland Butler, CEO
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
CAD$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 CAD$27 million in cash
and approximately 49.0 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