Callinan Royalties Reports on Line of Credit for Wallbridge Mining's Broken
TSXV: CAAVANCOUVER, 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, 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 62/3%
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
For more information, please visit www.callinan.com or contact: Roland Butler,
CEO, Callinan Royalties Corporation, +1 709 535 3433,
firstname.lastname@example.org; Tamara Edwards, CFO, Callinan Royalties Corporation,
+1 604 424 8639, email@example.com; Corporate Office: 770 - 475 West
Georgia Street, Vancouver, BC, Canada, V6B 4M9
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CO: Callinan Royalties Corporation
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