Callinan receives shareholder approval and final court order for Arrangement with Callinex
June 09 2011 - 2:02PM
PR Newswire (Canada)
VANCOUVER, June 9, 2011 /CNW/ -- VANCOUVER, June 9, 2011 /CNW/ -
Callinan Mines Limited ("Callinan" or the Company")(CAA:TSX.V), is
pleased to announce that the Supreme Court of British Columbia has
issued a final order approving the plan of arrangement (the
"Arrangement") involving Callinan and Callinex Mines Inc.
("Callinex"). Receipt of the final order follows Callinan's
special meeting of its shareholders (held on June 7, 2011) whereby
the special resolution authorizing the Arrangement was approved by
99.99% of the votes cast by Callinan shareholders present in person
or represented by proxy at the Callinan special meeting. Further,
the TSX.V has conditionally accepted for filing the listing
application for Callinex. The Arrangement provides for the spin-out
of Callinan's exploration assets to Callinex. Following the
closing of the Arrangement, Callinex will hold all of Callinan's
exploration assets, including Callinan's interest in the Coles
Creek project located in British Columbia and the Gossan Hill gold
and silver project located in Manitoba, and will have approximately
$8 million in cash. Callinan will continue to hold a 6⅔% net
profits interest royalty and a $0.25 per ton royalty in the 777
Mine located in Flin Flon, Manitoba. Callinan will also
retain its interest in the War Baby mineral claim. Callinan's
President and CEO, Mike Muzylowski, commented "We are looking
forward to moving on as a royalty company under the direction of
Roland Butler. Meanwhile, the spirit of discovery that founded
Callinan will live on in Callinex as we explore a vast, high
potential property portfolio. We hope that this action will provide
investors and shareholders with additional investment flexibility,
and ultimately a better expression of the value of the two
companies." Pursuant to the Arrangement, the Company's name will be
changed to "Callinan Royalties Corporation". The Arrangement
will involve, among other things, the distribution of common shares
of Callinex (the "Callinex Shares") to shareholders of Callinan as
at the effective date of the Arrangement such that each Callinan
shareholder will hold (i) one common share of Callinan for each
common share of Callinan held on the effective date of the
Arrangement; and (ii) one Callinex Share for every 4.5 common
shares of Callinan held on the effective date of the Arrangement.
Completion of the Arrangement and the listing and posting to trade
of the Callinex Shares is subject to customary regulatory approvals
and is expected to occur within the next few weeks. Callinan will
advise in a further news release as to the effective date of the
Arrangement and the expected date of the listing and posting to
trade of the Callinex Shares. Further details regarding the
Arrangement are set out in Callinan's Notice of Special Meeting and
Management Proxy Circular dated May 7, 2011, which is available at
www.sedar.com. On behalf of the Board of Directors 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 timing and amount of expenditures.
Callinan does not assume the obligation to update any
forward-looking statement, except as required by applicable law. To
view this news release in HTML formatting, please use the following
URL:
http://www.newswire.ca/en/releases/archive/June2011/09/c4501.html p
Braden Maccke, 736 Granville Street, Suite 110, Vancouver, BC, V6Z
1G3, Telephone: (604) 605-0885, Toll-Free: 1-877-228-5210, Fax:
(604) 605-0886, Email: a
href="mailto:info@callinan.com"info@callinan.com/a, Website: a
href="http://www.callinan.com"www.callinan.com/a /p
Copyright