Callinan Mines Receives Adjustment Payment From HudBay Minerals
VANCOUVER - Callinan Mines Limited (TSX.V --CAA, OTCBB: CCNMF) has
received a letter from HudBay Minerals Inc.
informing the Company of an outstanding balance of $6,264,000 payable to Callinan under its Net Profits Interest in the 777 Mine.
In the letter, HudBay Minerals stated that a
recalculation resulted from an error they identified in the interpretation
and application of a certain clause. As a result, Hudbay
Minerals explained that certain charges were incorrectly added to the per-ton
zinc treatment charge for a portion of the year 1997, and then from 2005
Callinan Mines has been reimbursed by Hudbay Minerals in the amount above to account for the
difference created by the recalculation, with interest. Hudbay
Minerals noted this recalculation includes an estimated impact for the year
ended December 31, 2010 of $973,000, 75% of which has been included in the
HudBay Minerals forwarded the reimbursement, along
with a letter of explanation, absent of any request or inquiry by Callinan, who was unaware of the recalculation until
brought to the Company's attention by HudBay
Minerals. Callinan has since requested some
additional information and clarification from HudBay
and will review this reimbursement with Callinan's
This payment is unrelated to Callinan's outstanding
litigation against HudBay Minerals whereby Callinan seeks to gain a full and transparent
understanding of the means by which HudBay Minerals
has calculated the Net Profits Interest since 1989, and to assure its
accurate calculation and timely payment for the future of the project.
On Behalf of the Board of Directors,
President and CEO
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. Callinan does not assume the
obligation to update any forward-looking statement.