The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor A profit-sharing deal with a junior miner cost HudBay Minerals $19.29 million in earnings from the 777 mine last year. Callinan Mines announced this week it has received $5.09 million from HudBay, representing the final payment for 2010. The cash is on top of interim payments totaling $14.2 million that Callinan received on a quarterly basis for the year. Under a 1988 agreement, Callinan is entitled to a 6.66 per cent profits interest in 777. It also gets 25 cents for every tonne of ore milled from the site. This past spring, Callinan announced it had received an additional payment of $6.26 million from HudBay to make up for what the latter company called a calculating error. "...Hudbay Minerals explained that certain charges were incorrectly added to the per-ton zinc treatment charge for a portion of the year 1997, and then from 2005 onwards," Callinan said in a news release. Callinan and HudBay remain embroiled in a lawsuit, with the former company alleging it has not received all monies it is due and the latter denying any wrongdoing.7/29/2011
