Callinan Royalties and Evrim Resources Enter Into An Alliance and
Investment Agreement
TSXV: CAA
VANCOUVER, Oct. 25, 2012 /CNW/ - Callinan Royalties
Corporation ("Callinan") has signed an agreement with Evrim
Resources Corp. ("Evrim") for a four year, C$1.5 million regional exploration alliance (the
"Alliance") in Mexico. The
Alliance will initially focus on generating gold and silver targets
within a 40,000 square kilometre Area of Interest (AOI) in
prospective mineral belts with a firm commitment of C$500,000 in year one.
Callinan will provide annual funding to the
Alliance and Evrim will conduct generative exploration within the
AOI to stake and acquire new projects (the "Projects") and develop
the Projects for joint venture purposes. Projects acquired
within the AOI during the term of the Alliance will be 100% owned
by Evrim and subject to a 1.5% Net Smelter Return (NSR) royalty in
the case of precious metals and a 1.0% NSR royalty in the case of
base metals to Callinan. Evrim will grant to Callinan a Right of
First Offer on the sale of any royalties owned by Evrim on Alliance
Properties.
In addition, Callinan plans to participate in a
non-brokered private placement currently being arranged by
Evrim.
Callinan is pleased to enter this mutually
beneficial arrangement with Evrim. A key part of Callinan's
royalty creation strategy is to invest with select exploration
companies such as Evrim that follow the prospect generation
business model.
On Behalf of the Board of Directors,
Roland Butler
Roland Butler, CEO
About Evrim Resources
Evrim is a mineral exploration company with a
diverse portfolio of quality gold and copper projects, and a
geological database covering Mexico and portions of southwestern
United States. Evrim's business
plan is to generate exploration targets that it will advance
through option and joint venture agreements with industry partners
to create shareholder value. The projects generated to date form a
solid foundation for Evrim's execution of the joint venture
business model, which will be further enhanced by a pipeline of new
internally developed projects.
For further information on Evrim please visit
www.evrimresources.com.
About Callinan
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 royalty on lands that
include the 777 Mine owned by HudBay Minerals Inc. located in
Flin Flon, Manitoba, Canada as
well as the adjacent 777 North Mine scheduled for production in
2012. 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 $30 million in cash and
approximately 48.2 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