Callinan Mines Limited (TSX.V-CAA) is pleased to announce the acquisition of a VMS property in the Herblet Lake area of Manitoba.
The company has entered into an option agreement with W. Bruce Dunlop Limited (“WBDL”) to purchase up to a 100% working interest in ten mineral claims known as the Herblet Lake Claims located in The Pas mining district in the Snow Lake area, Manitoba.
The new acquisition is known to Callinan’s geological team, who drilled the property with a previous operator. VMS style zinc and copper mineralization was encountered, and further drilling is warranted. A VTEM survey conducted by Geotech Airborne of Aurora Ontario early this year located several conductive targets that have yet to be tested
President Mike Muzylowski explained. “This property has the potential to contain zinc and copper. The sericitic alteration and mineralization encountered in the previous program were encouraging, and we’re looking forward to exploring the previously un-tested conductors.”
The company plans to test the targets by drilling as part of a winter drill program.
Callinan has agreed to pay $10,000 and issue 25,000 common shares to WBDL upon the execution of the agreement, pay a further $40,000 and issue an aggregate of 75,000 common shares over 36 months from the effective date of the agreement. Callinan is also required to incur cumulative expenditures of $50,000, $100,000 and $250,000 on or before 12, 24 and 36 months, respectively, from the effective date of the agreement.
WBDL is also entitled to receive a 2.5% net smelter returns royalty interest, as defined in the agreement, with Callinan having an option to purchase up to 50% of the royalty interest at any time for the sum of $1,250,000. Callinan has also agreed to include 3 mining claims located in the Herblet Lake area currently owned by the Company in the determination of the royalty interest and royalties payable to WDBL.
The transaction is subject to regulatory approval.
President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of private placements and future expenditures. 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 contemplated private placements and the timing and amount of expenditures. Callinan does not assume the obligation to update any forward-looking statement.