VANCOUVER, Oct. 24, 2013 /CNW/ - Callinan Royalties Corporation
("Callinan", the "Company") (TSXV: CAA) announces that it has signed an
Exploration Alliance Agreement (the "Agreement") with Renaissance Gold
Inc. ("RenGold") (TSX: REN). The purpose of the Agreement is to fund
prospect generation activities in order for RenGold to attract joint
venture partners to projects, while allowing Callinan to generate and
The initial geographic focus will be southern Nevada 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, RenGold 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 RenGold proposes that additional value can be generated after
spending $150,000, Callinan may elect to contribute subsequent funding
with RenGold on an equally shared basis with no change to Callinan's
royalty interest. RenGold may also propose exploration on RenGold'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
Callinan is supporting the prospect generation business model as a means
to create royalties in prospective areas through agreements with
companies such as Renaissance that are established prospect generators
and have demonstrated expertise in their chosen jurisdictions.
On Behalf of the Board of Directors,
Roland Butler, CEO
About Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a
large portfolio of exploration projects in Nevada, Utah, Argentina and
Spain. Many of the projects are in exploration earn-in agreements with
industry partners who provide exploration funding. RenGold applies the
extensive exploration experience and high-end technical skills of its
founders and team members to search for and acquire new precious metal
exploration projects that are then offered for joint venture.
For additional information, please visit www.rengold.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 49.4 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:
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