VANCOUVER, June 20, 2012 /PRNewswire/ - Callinex Mines Inc. (TSX.V - CNX) (OTCQX - CLLXF) has entered into an agreement to acquire a 100% interest in a group of claims known collectively as the "Flin Flon Claims". The 44 adjacent claims are located in Northern Manitoba's Flin Flon Mining district, south of the operating 777 mine, and near the formerly producing Schist Lake, Westarm, and Centennial mines. The claims total approximately 3,798 hectares in area, and are considered to be highly prospective for VMS style mineralization. Because of their proximity to known world class VMS deposits in Northern Manitoba, the Company considers them to be high value exploration targets.
The Flin Flon Caims were optioned from the vendor, Peter C. Dunlop (the "Optionor"), for consideration of $25,000 and 25,000 shares of Callinex' common stock, to be issued within 5 business days of the TSX Venture Exchange's approval of the agreement (the "Effective Date"). Should the company elect to continue operating the property after 12 months following the Effective Date, they shall pay a further $30,000 and 30,000 shares of the company's common stock to the Optionor. Should the company elect to continue operating the property after 24 months from the Effective Date, an additional payment of $45,000 and 45,000 shares of the company's common stock is due to the Optionor. Finally, should the company elect to maintain its interest in the property after 36 months from the Effective Date, a final payment of $150,000 and 150,000 shares of the company's common stock is payable to the Optionor. Should the company elect to discontinue its operation of the property at any time prior to the option payments being made, full undivided ownership of the claims will be returned to the Optionee.
Upon the final payment of all three annual installments of cash and stock, the Company will own a full 100% interest in the Flin Flon Claims, subject to a 2% NSR payable to the Optionor (the "Royalty"). The Optionor holds a 100% interest in the Flin flon Claims except that nine of the claims are currently subject to a 1% net smelter returns royalty which the Optionor has agreed to repurchase within 24 months of the Effective Date. The Company retains the right, exercisable at any time, to purchase 50% of the Royalty (being 1% of Net Smelter Returns) from the Optionee for a total payment to the Optionor of $1,000,000.
On Behalf of the Board of Directors,
President and COO
All of Callinex's exploration programs are conducted under the direction of J.J. O'Donnell, P.Geo, a qualified person as defined by national instrument 43-101, who has reviewed and approved the contents of this release.
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.
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 work programs and the timing and amount of expenditures. Callinex does not assume the obligation to update any forward-looking statement.
SOURCE Callinex Mines Inc.