TSXV: CAA
VANCOUVER,
Aug. 14, 2013 /CNW/ - Callinan
Royalties Corporation ("Callinan") (TSXV:CAA) Further to
Callinan's acquisition on July 30,
2012 of a $5.4 million
principal amount convertible debenture (the "Convertible
Debenture") from Gold Royalties Corporation ("Gold
Royalties") as disclosed in Callinan's news release of
July 31, 2012, Callinan announces the
Convertible Debenture is fully convertible under its terms
effective August 13, 2013, given that
disinterested shareholders of Gold Royalties approved the creation
of a new control person of Gold Royalties which Callinan would
become upon full conversion thereof.
On full conversion of the Convertible Debenture
into units in accordance with its terms, Callinan would
beneficially own 6,750,000 common shares and 6,750,000 warrants
(the "Warrants") exercisable to purchase 6,750,000 further
common shares of Gold Royalties, representing approximately 23.64%
of the then issued and outstanding common shares of Gold Royalties
(the "Shares"), on an undiluted basis and without giving
effect to the exercise of the Warrants or the conversion of any
interest payable to Callinan and 38.24% of the issued and
outstanding Shares of Gold Royalties on a partially diluted basis,
giving effect to the exercise of the Warrants but without giving
effect to the conversion of any interest.
Callinan purchased the Convertible Debenture for
investment purposes and it continues to monitor the business
prospects, financial condition and potential capital requirement of
Gold Royalties. Depending on its evaluation of these and
other factors, Callinan may from time to time in the future
increase or decrease its ownership, control or direction over the
Shares or other securities of Gold Royalties through market
transactions, private placement, subscriptions from treasury or
otherwise in accordance with the terms of the Convertible Debenture
and TSX Venture Exchange policies. Callinan has no present
intention to change its holdings of securities of Gold
Royalties.
On Behalf of the Board of Directors,
Roland Butler
Roland Butler, CEO
About Callinan
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 49.1 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