Callinan Receives 6 2/3% Net Profits Interest From Hudbay Minerals Inc. 777 Mine for Complete 4th Quarter
February 12 2008 - 6:00PM
Marketwired
VANCOUVER, BRITISH COLUMBIA has today received an interim
payment of $2,36,8127 from Hudbay Minerals Inc. representing 75% of
Hudbay's estimate of 6 2/3% of net profits from Hudbay's 777 Mine
in Flin Flon, Manitoba for the quarter ended December 31, 2007.
Today's payment is the first time that Hudbay's quarterly payment
represents Callinan's 6 2/3% Net Profits Interest in the 777 Mine
for a full three month period.
The net profit payment is derived from an agreement made between
Callinan and Hudbay dated January 1, 1988. Under the agreement,
Hudbay was entitled to recover all its capital, operating and other
costs incurred on the 777 Mine (formerly, the Callinan Mine) plus
interest before Callinan was entitled to receive any net profits.
The remaining 25% of the quarterly payment will be based on actual
net profits as defined in the agreement and is payable not more
than 130 business days following the completion of Hubay's fiscal
year. All future payments are due 30 business days following the
end of each fiscal quarter.
Mike Muzylowski, President of Callinan, stated, "We are pleased
to finally be sharing in Hudbay's profitable operations at the 777
Mine which we sold to Hudbay's predecessor in 1988. The future
quarterly revenues will enable Callinan to continue extensive
exploration programs on its numerous advanced poly-metallic
exploration properties in British Columbia, Manitoba and
Saskatchewan without further dilution to the shareholders."
Mike Muzylowski, President and CEO
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to the completion of private placements and
future expenditures. These statements address future events and
conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the statements. Such factors include, among others, the ability to
complete contemplated private placements and the timing and amount
of expenditures. Callinan does not assume the obligation to update
any forward-looking statement.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: Callinan Mines Limited Braden Maccke (604) 605-0885
(604) 605-0886 (FAX) Email: investors@callinan.com Website:
www.callinan.com