NEW BEGINNING FOR CAATHE CURTAIN RISES ON A NEW BEGINNING FOR CALLINAN SHAREHOLDERS
The intent to split Callinan into a Royalty company and an exploration company (NEWCO) has been made official.
Royalty Company: 6 2/3 % NPI royalty + $ .25/ ton + War Baby + Lawsuit.
NEWCO: All exploration prospects.
Details will be forthcoming in an information circular.
Important note: Royalty companies generally trade@ 10 to 15 x revenue.
During the past three months Callinan has received $ 6, 000,000 NPI for 4th quarter 2010 and an additional $ 6,000,000 “adjusted” compensation for prior calculation errors. The outlook for increased revenue in 2011 is positive due to increased commodity prices and improved calculation procedures.
The stage is being set, and the plot thickens for more exciting action……..
@ $.50 / share revenue. CAA is undervalued ???
Closing Price: $ 3.45
Symbol: CAA: TSX venture
Web site: www.callinan.com