Callinan Mines Limited (CAA – TSX.V) announces that it has entered into an option agreement with W.S. Ferreira Ltd. (“WSFL”) to purchase a 100% working interest in three mineral claims known as the Moak and Norris Lake Claims, and two mineral exploration licenses covering an aggregate area of approximately 10,799 hectares, all located in the Thompson Nickel Belt area of Manitoba.
Callinan has agreed to pay $10,000 and issue 50,000 of its common shares to WSFL upon the execution of the agreement and, in order to maintain and exercise the option, to pay a further $90,000, issue an aggregate of 150,000 of its common shares and incur cumulative expenditures of $450,000, on or before 36
months from the effective date of the agreement.
WSFL is entitled to receive a 2% net smelter returns royalty interest, with Callinan having an option to purchase up to 50% of the royalty interest at any time for the sum of $1,000,000.
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.