VANCOUVER, Jan. 25 /PRNewswire-FirstCall/ - Callinan Mines
Limited ("Callinan") (CAA-TSX.V) announces that, further to its
news release dated October 25, 2010,
it has amended the pricing terms of its private placement of two
million units to Mr. Roland Butler.
In October 2010, Mr. Butler was
appointed Vice President of Callinan
Mines and to its Board of Directors and, upon closing the
private placement, he will become a significant shareholder of
Callinan Mines.
Spin Out Proposal
Following a proposed reorganization of Callinan's assets (the
Spin Out Proposal) whereby Callinan will form a new exploration
company (NewCo), Callinan plans to continue as a royalty company
with Mr. Butler as the chief executive officer. Callinan's strategy
will be to engage in early stage royalty creation through prospect
generation and financing complemented by selective royalty
acquisitions.
Under the terms of the Spin Out Proposal, existing Callinan
shareholders will receive the same percentage interest in Newco as
they presently hold in Callinan such that, following the
implementation of the Spin Out Proposal, the shareholders will hold
shares in two companies, existing Callinan and newly incorporated
Newco. Callinan's royalty assets and its War Baby mineral claim
will be held by Callinan and its current exploration assets will be
held by Newco. The Spin Out Proposal is subject to regulatory and
shareholder approval.
Private Placement
Each unit of the private placement will be priced at
$2.19 to raise total proceeds of
$4,380,000 and each warrant will be
exercisable to purchase a common share of Callinan for a period of
five years at the price of $2.58. All
other terms of the private placement remain the same. The
private placement is subject to final acceptance for filing by the
TSX Venture Exchange.
Mike Muzylowski
Mike Muzylowski
President and CEO
Neither 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.
Some statements in this news release contain
forward-looking information.. 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 the contemplated private placement and the
timing and amount of expenditures. Callinan does not assume the
obligation to update any forward-looking statement.
SOURCE Callinan Mines Ltd.
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