VANCOUVER, Jan. 25 /CNW/ - Callinan Mines Limited ("Callinan")
(CAA-TSX.V) announces that, further to its news release dated October
25, 2010, it has amended the pricing terms of its private placement of
two million units to Mr. Roland Butler. In October 2010, Mr. Butler was
appointed Vice President of Callinan Mines and to its Board of
Directors and, upon closing the private placement, he will become a
significant shareholder of Callinan Mines.
Spin Out Proposal
Following a proposed reorganization of Callinan's assets (the Spin Out
Proposal) whereby Callinan will form a new exploration company (NewCo),
Callinan plans to continue as a royalty company with Mr. Butler as the
chief executive officer. Callinan's strategy will be to engage in early
stage royalty creation through prospect generation and financing
complemented by selective royalty acquisitions.
Under the terms of the Spin Out Proposal, existing Callinan shareholders
will receive the same percentage interest in Newco as they presently
hold in Callinan such that, following the implementation of the Spin
Out Proposal, the shareholders will hold shares in two companies,
existing Callinan and newly incorporated Newco. Callinan's royalty
assets and its War Baby mineral claim will be held by Callinan and its
current exploration assets will be held by Newco. The Spin Out Proposal
is subject to regulatory and shareholder approval.
Each unit of the private placement will be priced at $2.19 to raise
total proceeds of $4,380,000 and each warrant will be exercisable to
purchase a common share of Callinan for a period of five years at the
price of $2.58. All other terms of the private placement remain the
same. The private placement is subject to final acceptance for filing
by the TSX Venture Exchange.
President and CEO
Neither 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.
Some statements in this news release contain forward-looking
information.. These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the statements. Such factors
include, among others, the ability to complete the contemplated private
placement and the timing and amount of expenditures. Callinan does not
assume the obligation to update any forward-looking statement.
SOURCE Callinan Mines Ltd.
For further information:
Braden Maccke,736 Granville Street, Suite 1100 Vancouver, BC V6Z 1G3
Telephone: 604-605-0885 Fax: 604-605-0886
Email: email@example.com Website: www.callinan.com