TSXV: CAA
VANCOUVER, July 29,
2014 /CNW/ - Callinan Royalties Corporation ('Callinan', the
'Company') announces that it has exercised the right to purchase an
additional 0.5% Gross Revenue Royalty ('GRR') for C$3 million on the Gunnison Copper project owned
by Excelsior Mining Corp. ('Excelsior'). The project is located in
Cochise County, Arizona, USA.
In July 2013,
Callinan entered a funding agreement with Excelsior that is based
on a series of optional royalty acquisitions following the
completion of key feasibility study and permitting milestones. Upon
entering the agreement, Callinan purchased an initial 0.5% GRR and
has the right to acquire up to a total 3% GRR by providing
additional funding.
Under the agreement, Callinan was granted three
principal funding options to be exercised following the completion
of key milestones. With each option, Callinan has the right to
purchase an additional 0.5% GRR for C$3
million each for a total of C$9
million for a 1.5% GRR. The milestones to be met by
Excelsior are as follows:
- Completion of a prefeasibility study and successful raise of
additional financing from other sources
- Completion of hydrology and metallurgy models to feasibility
study level
- Successful administrative review of the key permits (Aquifer
Protection Permit and the Underground Injection Control and Aquifer
Exemption Permit)
A Prefeasibility Study on the Gunnison Copper
project was filed in February 2014 on
SEDAR. In June 2014, Excelsior
announced that it had arranged a $4-million financing with Dundee Securities Ltd,
which closed in late June. The first milestone was met and the
royalty option was recently exercised.
Callinan was also granted a Construction Option
under the agreement, which gives Callinan the right to buy a 1% GRR
for up to C$10 million following
completion of the Feasibility Study, receipt of all required
permits and Excelsior securing a firm commitment for 50% of the
required capital required for mine construction.
Project Summary
The Gunnison Copper project is located in a
remote section of Cochise County
in southeastern Arizona, USA. The
focus of the project is the oxide portion of the North Star deposit, which has the potential to
be mined using in-situ recovery methods according to Excelsior's
public disclosure. Additional information about the Gunnison Copper
Project can be found in the technical report filed by Excelsior
under its profile on SEDAR at www.sedar.com entitled: "Gunnison
Copper Project NI 43-101 Technical Report Prefeasibility Study,
Cochise County, Arizona, USA"
dated February 18, 2014.
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
production royalty CAD $0.25 per ton
of ore milled 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 $23 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