TSXV: CAA
VANCOUVER, July 23, 2013 /CNW/ - Callinan Royalties
Corporation has received a payment of $4,911,052 from Hudbay Minerals Inc. This payment
includes interest and represents the remaining balance of payments
for 2012 to Callinan and brings total royalty payments for the 2012
calendar year to $19,996,975
including interest.
Interim quarterly payments were made throughout
calendar year 2012, 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 mined. 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, 2012, 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
$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 $28 million in cash and
approximately 49.1 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