SETTLEMENT: Callinan, Hudbay reach agreement

VANCOUVER – Callinan Royalties Corp. says it has reached an comprehensive agreement with Hudbay Minerals of Toronto. The deal ends litigation and creates a new relationship between the companies.

Callinan filed suit in 2007 alleging that Hudbay was not complying with a net profits and royalty agreement signed in 1988. Callinan sought to audit the books and records for the Callinan and 777 mines near Flin Flon, MB.

The current settlement resolves the historical litigation. It changes Callinan's 6.57% net profits interest to a 4% net smelter royalty. A new 3% NSR was created on certain areas surrounding Hudbay's exploration ground. And it gives Hudbay an option to explore the War Baby claim, also known as 777 Deeps.

Callinan said the settlement will be worth aggregate payments of up to $19 million from Hudbay.

Details are available at Callinan.com.