TSXV: CAA
VANCOUVER,
March 24, 2014 /CNW/ -
Callinan Royalties Corporation ('Callinan', the 'Company') (TSXV:
CAA) notes that on March 18, 2014,
Wallbridge Mining Company Ltd.'s board of directors announced that
it approved a production decision for the Broken Hammer copper and
platinum group metals project near Sudbury, Ontario, Canada.
As described by Wallbridge Mining in its press release,
the Broken Hammer project is projected to extract copper, nickel
and platinum group metals mineralization from an open pit where
bulk sampling was conducted in 2011. Construction and subsequent
production is expected by Wallbridge Mining to commence in
April 2014 with open-pit mining to be
completed within 10 to 12 months at an average daily rate of
approximately 800 tonnes per day. Wallbridge Mining announced on
March 24, 2014 that it had entered
into a custom milling agreement.
Callinan reports that Wallbridge Mining has subsequently
drawn the full amount of $2 million
from the line of credit having previously drawn $750,000 in accordance with an agreement with
Callinan reported in November 2012.
The line of credit bears an interest calculated as the greater of
10% per annum or a 1.5% Net Smelter Returns ("NSR") royalty
prorated on the funds drawn. The term will be 3 years or until
completion of the extraction and processing of mineral produced
from the Broken Hammer project, whichever occurs first.
In addition, Callinan also has the right to buy an
additional 1% NSR royalty on the Broken Hammer property for
$2 million with inflation adjustment.
As reported by Wallbridge Mining on December
17, 2013, the distal extensions of the Broken Hammer project
and adjacent areas are part of the Wisner properties that are
subject to a joint venture agreement with Lonmin plc, which is
funding exploration for platinum group metals.
The line of credit is expected to generate short term cash
flow for Callinan. In addition, the agreement with Wallbridge
Mining provides Callinan with a royalty option on the Broken Hammer
project for further upside potential. Callinan is a shareholder of
Wallbridge Mining and holds additional royalty options on
properties that exhibit potential for copper, nickel and platinum
group metals deposits located in the Sudbury area, which is one of the most
productive mining districts in Canada.
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 $25 million in cash and
approximately 49.2 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