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,
J.J. O'Donnell
J.J. O'Donnell
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.
