TSXV: CAA
VANCOUVER, May 16, 2014 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company') (TSXV: CAA) has acquired
4,000,000 units (the "Units") of Estrella Gold Corporation
('Estrella') (TSXV:EST) at a price of $0.05 per Unit pursuant to a private placement.
Each Unit consists of one common share (a "Share") of Estrella and
one share purchase warrant (a "Warrant"), with each Warrant
exercisable to purchase one further common share of Estrella (a
"Warrant Share") at a price of $0.10
until May 15, 2017.
The Shares acquired by Callinan represent approximately 9.16% of
the currently issued and outstanding common shares of Estrella, on
an undiluted basis and without giving effect to the exercise of the
Warrants. If the Warrants are exercised, Callinan will acquire an
additional 4,000,000 Shares and will then hold 8,000,000 Shares,
representing 16.79% of the issued and outstanding common shares of
Estrella on an undiluted basis and after giving effect to the
exercise of the Warrants.
Callinan has acquired the Units for investment purposes and may
increase or decrease its ownership interest in Estrella depending
on, among other factors, market conditions. Callinan has sole
ownership and control of the Shares, and does not have any direct
or indirect interest in any other securities of Estrella. Callinan
has no intention at this time to acquire ownership of or control
over additional securities of Estrella. An early warning
report, as required under National Instrument 62-103, will be filed
by the Company on Estrella's SEDAR profile at www.sedar.com.
On Behalf of the Board of Directors,
Roland Butler
Roland Butler, CEO
About Estrella Gold Corporation
Estrella Gold Corporation is a "Prospect Generator" dedicated to
making new gold discoveries in Peru. Estrella currently holds three
properties in venture agreements where the venture partner is
funding all programs. Estrella has established joint ventures with
Cliffs Natural Resources Exploration Inc. on Yanac (pending), with
Esperanza Resources on Pucarana and with Lara Exploration on Isy.
Estrella has 41.6 million shares issued and outstanding on the TSX
Venture Exchange (TSX-V: EST).
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 $24 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