VANCOUVER, Sept. 9, 2011 /CNW/ - Callinan Royalties Corporation
("Callinan") has executed a standstill agreement with Hudson Bay Mining
& Smelting Co., Limited ("HudBay") , a wholly-owned subsidiary of
Hudbay Minerals Inc., which places in abeyance Callinan's law suit in
respect of its Net Profits Interest and Royalty agreement with Hudbay
dated January 1, 1988 while Callinan conducts an independent audit.
In the law suit, which was commenced in 2007 in the Manitoba Court of
Queen's Bench, Callinan alleges that HudBay has not properly accounted
to Callinan for the net profits interest ("NPI").
The law suit was prolonged while Callinan pursued an application against
Deloitte & Touche, LLP ("Deloitte"), HudBay's auditor for production of
Deloitte's working papers prepared in connection with Deloitte's annual
audit of the NPI and opinion to the effect that the NPI had been
Although the application did not initially succeed, Callinan prevailed
on appeal and production of the working papers was ordered by the
Manitoba court. Please refer to Callinan's news release dated July 04,
2011 for details. Deloitte advises that the working papers will be made
available by September 15, 2011.
Under the standstill agreement, Callinan will initially audit the NPI
calculations for four selected years, namely 1993, 2003, 2004 and 2007.
Callinan has retained Grant Thornton LLP to conduct the independent
audit. HudBay has agreed to cooperate with the auditors and to supply
all available documents reasonably requested for the audit.
In return, Callinan has agreed to hold the law suit in abeyance during
the conduct of the audit while retaining the right at its sole
discretion to terminate the audit and proceed with the law suit on
reasonable notice in writing to HudBay of not less than 30 days.
On Behalf of the Board of Directors,
Roland Butler, CEO
Callinan Royalties Corporation is a mineral royalty company based in
Canada. Its principal business activities centre on acquiring and
creating a portfolio of mineral royalties while diligently managing its
royalty interests and investments.
The Corporation currently has two producing royalties. Callinan holds a
6 2/3 % net profits interest royalty and a $0.25 per ton royalty on
lands that include the 777 Mine owned by Hudbay Minerals Inc. located
at Flin Flon, Manitoba as well as the adjacent 777 North Mine scheduled
for production in 2012. Callinan also holds the War Baby property (777
Deeps) and an associated royalty option located in proximity to the 777
Callinan is a Tier 1 company listed on the TSXV under the symbol
CAA. The Corporation has a strong financial position with no debt,
approximately $26 million in cash and 49,009,421 shares outstanding.
For more information, please visit www.callinan.com.
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:
Braden Maccke, 736 Granville Street, Suite 110, Vancouver, BC, V6Z 1G3, Telephone: (604) 605-0885, Toll-Free: 1-877-228-5210, Fax: (604) 605-0886, Email: email@example.com, Website: www.callinan.com