VANCOUVER – Callinan Mines Limited (“Callinan”) has entered into an option agreement (the “Agreement”) with 4058667 Manitoba Ltd. (“4058667”) and M’Ore Exploration Services Ltd. (“M’Ore”) pursuant to which Callinan has acquired an option (the “Option”) to purchase a 100% interest in and to 51 mineral claims known as the Pine Bay Claims and two mining leases known as the Pine Bay Lease and the Don Jon Lease (together, the “Leases”), and a 90% interest in and to 14 mineral claims known as the Sour Claims (together, the “Interests”).
Collectively, the claims host several significant mineral occurrences established by previous operators. Callinan intends to conduct an airborne VTEM survey on the ground in order to further define the occurences and search for previously unknown deeper targets. President Mike Muzylowski explained, “The known deposits that occur on these claims could be part of a larger, deeper system. A deep penetrating airborne electromagnetic survey will help us test this hypothesis.”
The Pine Bay Claims, the Sour Claims and the Leases are all located in the Pine Bay area of Manitoba, approximately 15 kilometres East of Flin Flon. The Leases and certain of the Pine Bay Claims are subject to 1% net smelter return royalty and the Pine Bay Lease is also subject to a 5.12% net profits interest.
Callinan has paid $20,000 to 4058667 and, upon regulatory approval of the Agreement, it has agreed to pay a further $180,000 and issue 50,000 common shares in its capital to 4058667. In order to maintain the Option and earn the Interests, Callinan shall make further cash payments totalling $175,000 to 4058667 and $25,000 to M’Ore and issue a further 375,000 common shares in its capital to 4058667 over 36 months following regulatory approval to the Agreement.
The Agreement is subject to regulatory approval.
President and CEO
Neither 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.
The Pine Bay project is overseen by Pat J. Deveaux, a qualified person as defined by National Instrument 43-101 who has reviewed and approved the contents of this release.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to 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.