VANCOUVER, May 16, 2012 /CNW/ - Callinan Royalties Corporation has received interim quarterly royalty payments totaling $4,001,294.50 from HudBay Minerals Inc.
The royalty payments include a payment of $ 3,896,936.00 from the 6⅔% Net Profits Interest Royalty and $104,358.50 from the $0.25 per ton of ore produced for the quarter ended March 31, 2012.
The Net Profits Interest payment represents 75% of an estimate by HudBay Minerals Inc. The remaining 25% is paid annually, in mid-July, 130 business days after the financial year end of HudBay Minerals Inc. as per the agreement.
The quarterly payments are due to Callinan's royalty interests on lands that include the 777 Mine at Flin Flon, Manitoba, Canada, which is the principal mining operation of HudBay Minerals Inc.
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 6⅔% net profits interest royalty and another $0.25 per ton royalty on lands that include the 777 Mine owned by HudBay Minerals Inc. located at Flin Flon, Manitoba, Canada as well as the adjacent 777 North Mine scheduled for production in 2012. Callinan also holds the 777 Deeps (War Baby) property and an associated royalty option located on that property, which is located adjacent to the 777 Mine.
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 $30 million in cash and approximately 48.4 million 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.
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