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Bullboard - Stock Discussion Forum Callinan Royalties Corporation CCNMF

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Callinan Royalties Corporation > Investment Agreement
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Post by Mineshack on Oct 25, 2012 7:45pm

Investment Agreement

October 25, 2012

Callinan Royalties and Evrim Resources Enter Into An Alliance and Investment Agreement

VANCOUVER, Canada -- Callinan Royalties Corporation ("Callinan") has signed an agreement with Evrim Resources Corp. ("Evrim") for a four year, C$1.5 million regional exploration alliance (the "Alliance") in Mexico. The Alliance will initially focus on generating gold and silver targets within a 40,000 square kilometre Area of Interest (AOI) in prospective mineral belts with a firm commitment of C$500,000 in year one.

Callinan will provide annual funding to the Alliance and Evrim will conduct generative exploration within the AOI to stake and acquire new projects (the "Projects") and develop the Projects for joint venture purposes. Projects acquired within the AOI during the term of the Alliance will be 100% owned by Evrim and subject to a 1.5% Net Smelter Return (NSR) royalty in the case of precious metals and a 1.0% NSR royalty in the case of base metals to Callinan. Evrim will grant to Callinan a Right of First Offer on the sale of any royalties owned by Evrim on Alliance Properties.

In addition, Callinan plans to participate in a non-brokered private placement currently being arranged by Evrim.

Callinan is pleased to enter this mutually beneficial arrangement with Evrim. A key part of Callinan's royalty creation strategy is to invest with select exploration companies such as Evrim that follow the prospect generation business model.

On Behalf of the Board of Directors,

Roland Butler

Roland Butler, CEO

About Evrim

Evrim is a mineral exploration company with a diverse portfolio of quality gold and copper projects, and a geological database covering Mexico and portions of southwestern United States. Evrim's business plan is to generate exploration targets that it will advance through option and joint venture agreements with industry partners to create shareholder value. The projects generated to date form a solid foundation for Evrim's execution of the joint venture business model, which will be further enhanced by a pipeline of new internally developed projects.

For further information on Evrim please visit www.evrimresources.com.
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