TSXV: CAA
VANCOUVER, July 09, 2014 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company') (TSXV: CAA) has received a
payment of $2,924,004.85 from Hudbay
Minerals Inc. This payment includes interest and represents the
remaining balance of payments for 2013 to Callinan and brings total
royalty payments for the 2013 calendar year to $11,488,032 including interest.
Interim quarterly payments were made throughout calendar year
2013, estimated by Hudbay Minerals Inc. to represent 75% of 6⅔% of
the net profits from the 777 Mine and 777 North Mine in
Flin Flon, Manitoba, plus
$0.25 per ton of ore milled. The
remaining 25% is paid with interest annually in July, 130 business
days after the financial year end of Hudbay Minerals Inc. as per
the agreement. The above payment represents the balance of the 25%
withheld over the four financial quarters ended December 31, 2013, adjusted to reflect final
calculation by Hudbay Minerals Inc. of the net profits
interest.
The payments are derived from Callinan's royalty interests on
lands that include the 777 Mine and 777 North Mine at Flin Flon, Manitoba, Canada, which are the
principal mining operations of Hudbay Minerals Inc.
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 $27 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