Callinex Mines Inc. (TSXV: CNX, OTCQX: CLLXF) has made a strategic move by entering into a termination and assumption agreement with Teck Resources Limited (NYSE: TECK) and Voyageur Mineral Explorers Corp. (VSE: VOY). This agreement effectively terminates Teck’s back-in right, which previously allowed the company to acquire up to 90% of certain mineral claims associated with the Alberts Lake Property in Manitoba.
This decision marks a significant shift in Callinex’s control over the Alberts Lake Property, as it holds an option to acquire a 100% interest in the site under an existing agreement with Voyageur. The termination of Teck’s back-in right not only strengthens Callinex’s position but also enhances its ability to explore and develop the property further.
As part of the termination agreement, Callinex will compensate Teck with 150,000 common shares and 75,000 share purchase warrants, each exercisable at a price of $2.00 per share for a duration of two years. Additionally, a one-time cash payment of C$1,000,000 will be made to Teck within 60 days following a decision to commence construction of a mine on the Alberts Lake Property. This milestone payment will be the responsibility of the property owner at that time, either Callinex or Voyageur.
Max Porterfield, President and CEO of Callinex, expressed enthusiasm about this development, stating that welcoming Teck as a shareholder provides them with exposure across Callinex’s exploration portfolio. He noted that this agreement will allow the company to target near-surface opportunities and expand on high-grade discoveries located nearby.
In conjunction with the termination agreement, Callinex and Voyageur have amended their option agreement by removing a final payment obligation of C$150,000 in common shares due on the fourth anniversary of their original agreement. This amendment reduces future financial commitments for Callinex and streamlines its operational focus.
The issuance of shares and warrants to Teck will be subject to resale restrictions for four months from the date of issue. The closing of both agreements is contingent upon acceptance by the TSX Venture Exchange.
This restructuring is poised to enhance Callinex’s operational flexibility in developing the Alberts Lake Property. With its strong resource base highlighted by the Rainbow deposit at its Pine Bay Project, boasting indicated resources totaling 272.4 million pounds of copper equivalent, Callinex is strategically positioned to leverage this property for future growth.
The company’s focus remains on advancing its portfolio of base and precious metals-rich deposits within established Canadian mining jurisdictions. By consolidating control over Alberts Lake and reducing financial obligations, Callinex is better equipped to navigate the challenges of resource exploration and development.
