VANCOUVER, March 14 /PRNewswire/ - Callinan Mines Limited
(TSX.V -CAA, OTCBB: CCNMF) has received a letter from HudBay
Minerals Inc. informing the Company of an outstanding balance of
$6,264,000 payable to Callinan under
its Net Profits Interest in the 777 Mine.
In the letter, HudBay Minerals stated that a recalculation
resulted from an error they identified in the interpretation and
application of a certain clause. As a result, Hudbay Minerals
explained that certain charges were incorrectly added to the
per-ton zinc treatment charge for a portion of the year 1997, and
then from 2005 onwards.
Callinan Mines has been
reimbursed by Hudbay Minerals in the amount above to account for
the difference created by the recalculation, with interest. Hudbay
Minerals noted this recalculation includes an estimated impact for
the year ended December 31, 2010 of
$973,000, 75% of which has been
included in the above payment.
HudBay Minerals forwarded the reimbursement, along with a letter
of explanation, absent of any request or inquiry by Callinan, who
was unaware of the recalculation until brought to the Company's
attention by HudBay Minerals. Callinan has since requested some
additional information and clarification from Hudbay and will
review this reimbursement with Callinan's independent auditors.
This payment is unrelated to Callinan's outstanding litigation
against HudBay Minerals whereby Callinan seeks to gain a full and
transparent understanding of the means by which HudBay Minerals has
calculated the Net Profits Interest since 1989, and to assure its
accurate calculation and timely payment for the future of the
project.
On Behalf of the Board of Directors,
Mike Muzylowski
President and CEO
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. Some statements in this news release
contain forward-looking information. These statements include, but
are not limited to, statements with respect to 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 work
programs and the timing and amount of expenditures. Callinan does
not assume the obligation to update any forward-looking
statement.
SOURCE Callinan Mines Ltd.