Callinan Royalties and Avrupa Minerals Enter Into Exploration Alliance
VANCOUVER, Oct. 4, 2013 /CNW/ - Callinan Royalties Corporation ("Callinan")
announces that it has signed an Exploration Alliance Agreement (the
"Agreement") with Avrupa Minerals Ltd. ("Avrupa"). The purpose of the
Agreement is to fund prospect generation activities in order for Avrupa to
attract joint venture partners to projects, while allowing Callinan to
generate and acquire royalties.
The initial geographic focus will be Portugal but may expand to other
jurisdictions. The Agreement will be for an initial three year term and calls
for Callinan to fund $150,000 of generative exploration during the first year
of the Agreement with the option to fund up to $100,000 in each of the two
In return for such funding, Avrupa will grant Callinan the option to receive a
0.5% Net Smelter Returns ("NSR") royalty on any new projects acquired as a
result of the generative exploration work. Alternatively, Callinan has the
option of funding an additional $150,000 on any of the new projects in
exchange for a 1.5% NSR royalty.
If Avrupa proposes that additional value can be generated after spending
$150,000, Callinan may elect to contribute subsequent funding with Avrupa on
an equally shared basis with no change to Callinan's royalty interest. Avrupa
may also propose exploration on Avrupa's existing mineral properties.
Callinan will have the option to fund $150,000 in exploration on those
projects in return for a 1.5% NSR royalty.
Callinan is supporting the prospect generation business model as a means to
create royalties in prospective areas through agreements with companies such
as Avrupa that are established prospect generators and have demonstrated
expertise in their chosen jurisdictions.
On Behalf of the Board of Directors,
Roland Butler, CEO
About Avrupa Minerals Ltd.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development
company focused on discovery, using a prospect generator model, of valuable
mineral deposits in politically stable and prospective regions of Europe,
including Portugal, Kosovo, and Germany. Avrupa is currently upgrading
precious and base metal targets to JV-ready status in a variety of districts
on numerous licenses, with the idea of attracting potential partners to
project-specific and/or regional exploration programs.
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 $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 $27 million in cash and approximately
49.4 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
For more information, please visitwww.callinan.com or contact:
Roland Butler, CEO Callinan Royalties Corporation +1 709 535 3433
Tamara Edwards, CFO Callinan Royalties Corporation +1 604 605 0885
Corporate Office: 1110 - 555 West Hastings Street Vancouver, BC Canada, V6B 4N4
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CO: Callinan Royalties Corporation
ST: British Columbia
NI: MNG NASDAQ ORDER VNT
-0- Oct/04/2013 11:50 GMT
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