Evrim Signs $1.5 Million Four Year Exploration Alliance with Callinan Royalties and Arranges Non-brokered Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2012) -
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Evrim Resources Corp. (TSX VENTURE:EVM) ("Evrim" or the "Company") is pleased to announce that it has signed an agreement with Callinan Royalties Corporation (TSX VENTURE:CAA) ("Callinan") 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 Royalty (NSR) in the case of precious metals and a 1.0% NSR 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.
"The Alliance with Callinan allows Evrim to expand its capabilities to deliver quality exploration opportunities to our current and prospective exploration partners," commented Paddy Nicol, President and CEO of Evrim. "In addition, combining our generative expertise with Callinan's capital provides Callinan excellent potential to realize value through future royalty streams. We look forward to a long relationship with Callinan."
The Company has arranged a 4,000,000 share non-brokered private placement at $0.33 per share to raise gross proceeds of $1.32 million. Callinan plans to participate in the private placement. The shares will be subject to a 4 month hold from the date of closing under Canadian Securities Law. Proceeds from the private placement will be used for working capital purposes.
About Evrim Resources
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.
About Callinan Royalties
Callinan Royalties is a Canadian company that creates and acquires mineral royalties. The company uses its royalty income to provide alternative financing options to mineral exploration and development companies with attractive projects. Callinan's strategy is to create shareholder value over the long term by generating a portfolio of profitable mineral royalties.
The Corporation currently has two producing royalties. Callinan holds a 6 2/3% net profits interest royalty and a $0.25 per ton royalty on lands that include the 777 Mine owned by HudBay Minerals Inc. located in Flin Flon, Manitoba, Canada as well as the adjacent 777 North Mine scheduled for production in 2012. Callinan also holds the 777 Deeps (War Baby) property and an associated royalty option on the property, which is located adjacent to the 777 Mine.
Callinan is a dividend paying Tier 1 company listed on the TSX Venture Exchange under the symbol CAA. The Corporation has a strong financial position with no debt, approximately $30 million in cash and approximately 48.2 million shares outstanding.
On Behalf of the Board
EVRIM RESOURCES CORP.
Paddy Nicol, President & CEO
Forward Looking Information
This news release includes certain statements that may be deemed "forward looking statements". All statements in this news release, other than statements of historical facts, that address events or developments that Evrim Resources Corp. (the "Company") expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
FOR FURTHER INFORMATION PLEASE CONTACT:
Evrim Resources Corp.
Evrim Resources Corp.
Vice President, Business Development