VANCOUVER, Dec. 17, 2013 /CNW/ - Callinan Royalties Corporation ('Callinan', the 'Company') (TSXV: CAA) announces continuation of its normal course issuer bid and reports on corporate developments.
Normal Course Issuer Bid
Callinan announces that it proposes to extend into 2014 its normal course issuer bid (the "Bid") subject to approval of the TSX Venture Exchange ("TSXV") and has filed a further Notice of Intention to Make a Normal Course Issuer Bid with the TSXV.
Under the Bid in 2014, up to 2,451,156 of its common shares may be purchased through the facilities of the TSXV and any such purchases will be at market prices. The Bid will commence on or after January 1, 2014 and will end on December 31, 2014 or on such earlier date as Callinan may complete its purchases pursuant to the Bid or as it may otherwise determine.
Callinan is continuing to engage in the Bid because it believes that the market price of its common shares from time to time does not properly reflect its underlying value. Purchases pursuant to the Bid will be conducted through Haywood Securities Inc. Under the Bid in 2013, Callinan has purchased 459,300 shares to date at an average price of $1.72 for cancellation.
The Company has filed an amended statement of claim in the Manitoba Court of Queen's Bench in its law suit against Hudson Bay Mining & Smelting Co. Ltd., a subsidiary of Hudbay Minerals Inc. ("Hudbay"). See Callinan's news release dated August 26, 2013 and Callinan's website for details.
The amended statement of claim will seek additional damages arising from the improper destruction of documents and financial records by Hudbay which effectively prohibited Callinan from conducting an independent audit of Hudbay's records as was agreed with Hudbay.
The Company has been informed by its legal counsel that Hudbay indicated that it will consent to the amendment on a without prejudice basis. The next step will be a further affidavit of documents dealing with the new issues followed by scheduling of examinations for discovery. Callinan is vigorously pursuing the litigation and will promptly report material developments.
The new board of directors of Callinan has requested that the Corporate Governance and Executive Compensation Committee review and recommend adjustments to compensation levels. Other expenditures throughout the company are being reviewed for reductions. Callinan will be moving to a new office address in Vancouver in early 2014. Contact details will be posted on Callinan's website.
Altius Minerals Corporation has recently reported in its quarterly filings on SEDAR that it has been acquiring equity stakes in two public royalty companies including Callinan Royalties. Altius reported that it holds 2,901,000 shares representing approximately 5.9% of the outstanding shares of Callinan.
On Behalf of the Board of Directors,
Roland Butler, CEO
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 CAD$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 CAD$27 million in cash and approximately 49.0 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