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Callinan Royalties and Evrim Resources Enter Into An Alliance and Investment Agreement
10/26/2012 8:05:00 AM
By: MT Newswires
Callinan Royalties Corporation (CAA.V) has signed an agreement with Evrim Resources Corp. (EVM.V) for a four year, C$1.5 million regional exploration alliance in Mexico that 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 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.