TSXV: CAA
VANCOUVER, Sept. 27, 2013 /CNW/ - Callinan Royalties
Corporation ("Callinan") will recommence litigation and file an
amended statement of claim in the Manitoba court of Queen's Bench in its law
suit against Hudson Bay Mining & Smelting Co. Ltd., a
subsidiary of Hudbay Minerals Inc. ("Hudbay"). Please see
Callinan's press release dated August 26,
2013 for a background summary and Callinan's website for
further details.
The amended statement of claim will seek additional
damages arising from the improper destruction of documents and
financial records by Hudbay which effectively prohibited Callinan
from conducting an independent audit of Hudbay's records as was
agreed with Hudbay.
The destruction of documents by Hudbay was carried
out in violation of the original net profits interest and royalty
agreement and also constituted a violation of Hudbay's obligations
under the rules of court to preserve and produce to Callinan all
relevant documents. The destruction of documents took place not
only before Callinan commenced the law suit in 2007 but also
subsequent to the commencement of the law suit.
Following the filing of the amended statement of
claim additional updates on the litigation process will be
disclosed from time to time as required by regulation or law and/or
until the Board of Directors of Callinan otherwise deems that
disclosure is appropriate.
On Behalf of the Board of Directors,
Roland
Butler
Roland Butler,
CEO
About Hudbay Minerals
Hudbay (TSX:HBM)(NYSE:HBM) is a Canadian integrated
mining company with assets in North and South America principally focused on the
discovery, production and marketing of base and precious metals.
Hudbay's objective is to maximize shareholder value through
efficient operations, organic growth and accretive acquisitions,
while maintaining its financial strength. A member of the
S&P/TSX Composite Index and the S&P/TSX Global Mining
Index, Hudbay is committed to high standards of corporate
governance and sustainability. Further information about Hudbay can
be found on www.hudbayminerals.com.
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