REVISED“STANDSTILL AGREEMENT” sets the stage for “MOVING FORWARD.”
Callinan Mines, ( Callinan Royalties Corporation) after having been refused by HudBay to ‘see the books,’ re. HudBay’s calculation of Callinan’s 6 2/3% NPI royalty interest in the 777 Mine, is finally having the veil of secrecy lifted. After a protracted period of expensive legal action, a court order of the Manitoba Court of the Queens’ Bench, paved the way for Callinan’s auditors to conduct an independent forensic audit. Both HudBay and its auditor, Deloitte are required to supply all requested data, including Deloitte’s working papers.
A final resolution of this on-going dispute will bring about closure of a very costly and contentious issue, and allow both parties to move forward on the possible exploitation of the Callinan-owned War Baby claims. The War Baby is contiguous to the 777 Mine and is believed to contain the down-dip extension of the lucrative 777 ore body. There is an obvious common interest: The profitable mine-life of the 777 Mine would be extended. The development cost and the time required would be minimal, and the increased revenue to Callinan Royalties Corporation would be substantial.
We know that ‘numbers don’t lie, but people do’ (except in case of Arthur Anderson & ENRON). However, finally, the Standstill Agreement and subsequent independent audit, will lift the veil of corporate secrecy and let the numbers speak for themselves. Callinan’s request for clarity is consistent with the TSE & TSX venture’s transparency and timely disclosure rules and regulations.
For details: Check Callinan’s news releases and filings.
Symbol: CAA: TSX venture