TSXV: CAA
VANCOUVER, Aug. 1, 2013 /CNW/ - Callinan Royalties
Corporation ("Callinan", the "Company") (TSXV: CAA) has completed
the transaction previously announced on July
23, 2013 with Excelsior Mining Corp ("Excelsior"). Callinan
has invested C$1 million by way of a
private placement in Excelsior and C$2
million to purchase a 0.5% Gross Revenue Royalty (a
"GRR") on the Gunnison Copper Project in Arizona, USA. Callinan was granted options to
acquire up to 3.0% GRR on the Gunnison Copper Project for a total
of $19M following completion of key
development and construction milestones. For more details on the
transaction, please refer to the news release dated July 23, 2013.
Under the Share Purchase and Royalty Option
Agreement between Callinan, Excelsior Mining Corp. ("Excelsior")
and James L. Sullivan Trust (the "Agreement"), Callinan
(a) |
purchased 6,250,000 common shares of Excelsior Mining Corp. at
a price of $0.16 per common share for aggregate consideration of
$1,000,000 (the "Placement Shares"), and |
|
|
(b) |
acquired a royalty which it is entitled to put to Excelsior
(the "Royalty Put Option") in exchange for up to $2,000,000
of common shares of Excelsior at a price of $0.25 per common share,
totaling 8,000,000 common shares (the "Royalty Put
Shares"). The Royalty Put Right will expire at the
earliest of 24 months from the Closing Date or the exercise of the
first royalty option granted to Callinan pursuant to the
Agreement. |
The Placement Shares represent 10.6% of
Excelsior's issued and outstanding common shares after giving
effect to the issuance of the Placement Shares. Pursuant to
the Agreement, the issuance of the Royalty Put Shares cannot result
in Callinan owning more than 19.9% of the issued and outstanding
common shares after such issuance.
Callinan has sole ownership and control of the
Placement Shares and the Royalty Put Option, and does not have any
direct or indirect interest in any other securities of Excelsior.
The securities acquired under the Agreement were acquired for
investment purposes, and Callinan has no intention at this time to
acquire ownership or control over additional securities of
Excelsior.
The securities acquired by Callinan pursuant to
the Agreement were acquired in reliance on the $150,000 "minimum amount exemption" in section
2.10 of National Instrument 45-106 of the Canadian Securities
Administrators.
On Behalf of the Board of Directors,
Roland
Butler
Roland Butler,
CEO
About Excelsior
Excelsior is an exploration company with a
copper project located within the Copper Porphyry Belt of
Arizona. The Gunnison Copper
Project is located close to the required infrastructure and its
oxide copper resource has the potential to be mined using in-situ
recovery methods. The Excelsior team consists of experienced
professionals with proven track records of advancing projects
towards production.
Further details about Excelsior can be found at:
http://www.excelsiormining.com.
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 production royalty on
lands that include the 777 Mine and 777 North Mine owned by HudBay
Minerals Inc. located in Flin Flon,
Manitoba, Canada. 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 $25 million in cash and
approximately 49.1 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