VANCOUVER, Oct. 4, 2013 /CNW/ - Callinan Royalties Corporation
("Callinan") announces that it has signed an Exploration Alliance
Agreement (the "Agreement") with Avrupa Minerals Ltd. ("Avrupa"). The
purpose of the Agreement is to fund prospect generation activities in
order for Avrupa to attract joint venture partners to projects, while
allowing Callinan to generate and acquire royalties.
The initial geographic focus will be Portugal but may expand to other
jurisdictions. The Agreement will be for an initial three year term and
calls for Callinan to fund $150,000 of generative exploration during
the first year of the Agreement with the option to fund up to $100,000
in each of the two subsequent years.
In return for such funding, Avrupa will grant Callinan the option to
receive a 0.5% Net Smelter Returns ("NSR") royalty on any new projects
acquired as a result of the generative exploration work. Alternatively,
Callinan has the option of funding an additional $150,000 on any of the
new projects in exchange for a 1.5% NSR royalty.
If Avrupa proposes that additional value can be generated after spending
$150,000, Callinan may elect to contribute subsequent funding with
Avrupa on an equally shared basis with no change to Callinan's royalty
interest. Avrupa may also propose exploration on Avrupa's existing
mineral properties. Callinan will have the option to fund $150,000 in
exploration on those projects in return for a 1.5% NSR royalty.
Callinan is supporting the prospect generation business model as a means
to create royalties in prospective areas through agreements with
companies such as Avrupa that are established prospect generators and
have demonstrated expertise in their chosen jurisdictions.
On Behalf of the Board of Directors,
Roland Butler, CEO
About Avrupa Minerals Ltd.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and
development company focused on discovery, using a prospect generator
model, of valuable mineral deposits in politically stable and
prospective regions of Europe, including Portugal, Kosovo, and Germany.
Avrupa is currently upgrading precious and base metal targets to
JV-ready status in a variety of districts on numerous licenses, with
the idea of attracting potential partners to project-specific and/or
regional exploration programs.
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 $27 million in cash and
approximately 49.4 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
For further information:
For more information, please visit www.callinan.com or contact:
Roland Butler, CEO
Callinan Royalties Corporation
+1 709 535 3433
Tamara Edwards, CFO
Callinan Royalties Corporation
+1 604 605 0885
1110 - 555 West Hastings Street
Canada, V6B 4N4