TSXV: CAA
VANCOUVER, Aug. 21, 2014 /CNW/ - Callinan Royalties
Corporation ('Callinan', the 'Company') has received interim
quarterly royalty payments totaling $2,244,799 from Hudbay Minerals Inc.
('Hudbay').
The royalty payments include a payment of $2,135,706 from the 6⅔% Net Profits Interest
Royalty and $109,093 from the
production royalty of $0.25 per ton
of ore for the quarter ended June 30,
2014.
The net profits interest payment represents 75% of an estimate
by Hudbay. The remaining 25% is paid annually, in mid-July, 130
business days after the financial year end of Hudbay as per the
agreement. Total royalty payments for the 2013 calendar year were
$11,488,032 including interest.
Please see Callinan's press release dated July 9, 2014 for details.
The quarterly payments are due to Callinan's royalty interests
on lands that include the 777 mine and 777 North mine at
Flin Flon, Manitoba, Canada, which
are principal mining operations of Hudbay.
In its most recent quarterly financial results, Hudbay reported
ore production at the Flin Flon
operations consistent with that of the same period in 2013. Zinc
and gold grades were lower while copper and silver grades were
higher compared with the same period last year, due to the
sequencing of stopes.
Overall operating costs were reported as lower primarily due to
the reduction in the use of contractors. Hudbay also noted
continued accumulation of unsold copper and zinc product inventory
but expected these to be sold over the remainder of 2014. Full year
production and operating cost guidance for 2014 was unchanged.
Hudbay provides operational details on the 777 mine and 777
North mine and full-year guidance for overall production and
operating costs, which can be found in Hudbay's publicly available
disclosure documents.
Quarterly Dividend
The board of directors of Callinan Royalties Corporation has
declared a quarterly cash dividend for the quarter ending
September 30, 2014 on its common
shares of two cents per common share
to all shareholders of record at the close of business on
September 30, 2014. The ex-dividend
date will be September 26, 2014 and
it is expected that the dividend will be paid on or about
October 15, 2014.
It is anticipated that future quarterly dividends will be
payable approximately 15 days following each fiscal quarter. The
declaration, timing, and payment of future dividends will largely
depend on the Company's financial results as well as other factors.
Dividends paid by Callinan Royalties Corporation are eligible
dividends for Canadian income tax purposes unless otherwise
stated.
On Behalf of the Board of Directors,
Roland Butler
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 production royalty
CAD $0.25 per ton of ore milled 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 $22 million in cash and approximately 49.2
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