Callinan Royalties and Northern Shield Enter Into an Investment and
Royalty Agreement
TSXV: CAA
VANCOUVER, Nov. 15, 2012 /CNW/ - Callinan Royalties
Corporation ("Callinan") has signed an agreement with Northern
Shield Resources Inc. ("Northern") whereby Callinan has invested
$700,000 in Northern by way of a
non-brokered private placement.
Under the agreement, Callinan has acquired
6,363,636 units of Northern at a price of $0.11 per unit. Each unit under the private
placement consists of one common share and one half common share
purchase warrant. Each whole warrant entitles Callinan to purchase
one additional common share of Northern at an exercise price of
$0.22 for a period of two years.
In addition, Callinan has paid Northern
$300,000 to acquire a royalty option
on one of six properties in Northern's Storm property group located
in northern Ontario. The
properties have in recent years demonstrated the potential for
volcanic-hosted massive sulfide base metal deposits over a large
area and are also considered prospective for magmatic platinum
group element deposits and other mineral deposit types.
The royalty option allows Callinan to acquire a
1% Net Smelter Returns royalty by paying Northern $2 million at any time up to the later of five
years or the mine development stage. Northern has also granted to
Callinan a Right of First Refusal on the sale of any royalties on
the Storm property group owned by Northern.
Callinan is pleased to enter this mutually
beneficial arrangement with Northern. A key part of
Callinan's royalty creation strategy is to invest with select
exploration companies such as Northern that apply the prospect
generation business model to explore new regions. Callinan will
become a significant shareholder in Northern while holding a
royalty option in an emerging significant mineral district in
Canada.
On Behalf of the Board of Directors,
Roland Butler
Roland Butler, CEO
About Northern Shield
Northern Shield is a Canadian-based mineral
exploration company concentrating on Platinum group elements and
base metals in under-explored regions of Canada and its common shares are listed on the
TSX Venture Exchange. Significant industry shareholders of Northern
Shield include HudBay Minerals Inc. and Anglo Pacific Group.
The company also has a joint venture with Impala Platinum.
About Callinan Royalties
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 $29 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