Callinex Mines Announces Termination of Alberts Lake Back-In Right
Rhea-AI Summary
Callinex Mines has announced a significant agreement with Teck Resources and Voyageur Mineral Explorers regarding the Alberts Lake Property in Manitoba. Teck has agreed to terminate its back-in right, which previously allowed it to acquire up to 90% of certain mineral claims. As compensation, Callinex will issue 150,000 common shares and 75,000 share purchase warrants to Teck, with warrants exercisable at $2.00 per share for two years.
Additionally, Teck will receive a C$1,000,000 cash payment if a decision is made to begin mine construction at Alberts Lake. In a separate amendment with Voyageur, Callinex has removed the final C$150,000 common share payment originally due on the fourth anniversary of their Option Agreement.
Positive
- Elimination of Teck's 90% back-in right strengthens Callinex's control over Alberts Lake Property
- Removal of C$150,000 fourth anniversary payment obligation reduces future financial commitments
- Company maintains strong resource base with Rainbow deposit containing 272.4 Mlb CuEq indicated and 83.4 Mlb CuEq inferred resources
Negative
- Future contingent payment obligation of C$1,000,000 if mine construction begins
- Dilution of existing shareholders through issuance of 150,000 new shares and 75,000 warrants to Teck
News Market Reaction – CLLXF
On the day this news was published, CLLXF gained 0.27%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
In consideration of Teck terminating the Back-In Right:
- Callinex will issue to Teck 150,000 common shares of Callinex (the "Shares") and 75,000 share purchase warrants of Callinex (the "Warrants"). Each Warrant will be exercisable at price of
$2.00 - Teck will receive a one-time cash payment of
C within sixty (60) days of a decision being made to commence construction of a mine on the Alberts Lake Property (the "Milestone Payment"). The Milestone Payment will be the responsibility of the owner of the Property (ie. either Voyageur or Callinex as the case may be).$1,000,000
Max Porterfield, President and CEO of Callinex, stated, "We are pleased to welcome Teck as shareholder of Callinex and provide them with exposure across the Company's entire exploration portfolio. Moving forward we are eager to include this area in future exploration plans to target near surface opportunities to further expand on the expanding high-grade discoveries located immediately to the south."
In addition to the foregoing, Callinex and Voyageur have entered into an amendment agreement (the "Amendment Agreement") to the Option Agreement whereby the parties removed the final payment of
The Shares and Warrants to be issued to Teck will be subject to restrictions on resale for a period of four months from the date of issue. Closing of the Termination Agreement and Amendment Agreement is subject to the acceptance of the TSX Venture Exchange.
About Callinex Mines Inc.
Callinex Mines Inc. (TSXV: CNX) (OTCQX: CLLXF) is advancing its portfolio of base and precious metals rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is highlighted by the rapidly expanding Rainbow deposit at its rich VMS Pine Bay Project located near existing infrastructure in the Flin Flon Mining District. Callinex prepared an indicated mineral resource on the Rainbow deposit of 3.44 Mt grading
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, completing the private placement financing, the ability to complete the proposed drill program and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.
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SOURCE Callinex Mines Inc.
FAQ
What are the terms of Teck's back-in right termination for CLLXF's Alberts Lake Property?
How much is the milestone payment CLLXF must pay Teck for Alberts Lake Property?
What changes were made to CLLXF's Option Agreement with Voyageur?
What are the current mineral resources at CLLXF's Rainbow deposit?
