So how do we get some portio of future value and exposure to upside for gold out of the royalty by selling the royalty for cash value now..... what if the Goldex has another 5 to 10 MM oz in the depths.... and we settle now for chump change on a known value / tone now.

The idea is to leveage the royalty to future upside in gold price and future resources found on the goldex.... and to monitize that value with some measurable yardstick.... not to mention the risk minimization of being in a play with several revenue streams.

If I had a choice of 5 to 10 million in cash verses 4 million CAA shares I would take the shares hands down!

Do you really think CAA has downside risk when Managment is throwing this much cash into the till!

Looking back I bet HBM is regreting not buying out CAA when it was trading at .40 with only 46 MM shares out. They have allready paid CAA allmost that amount over the last couple years.

There is no use taking stock in a company allready fully priced into the market like a HBM or an AEM as the upside potential is minimal..... you want something that is undervalued and has huge upside potential.

You don't know what kind of a deal you will get unless you put it on the market... so far I haven't seen anything to that expent indicated by PRB

If they are interested in monitizing the Royalty they need to put a press release out to that effect and see what come to the table....

JMHO

--------------------------------------------------------------------

Callinan increases Butler placement to $4.38-million

2011-01-25 14:54 ET - News Release

Mr. Mike Muzylowski reports

CALLINAN AMENDS TERMS OF PRIVATE PLACEMENT

Callinan plans to continue as a royalty company with Mr. Butler as the chief executive officer. Callinan's strategy will be to engage in early-stage royalty creation through prospect generation and financing, complemented by selective royalty acquisitions.

Callinan's royalty assets and its War Baby mineral claim will be held by Callinan, and its current exploration assets will be held by Newco

Private placement

Each unit of the private placement will be priced at $2.19 to raise total proceeds of $4.38-million and each warrant will be exercisable to purchase a common share of Callinan for a period of five years at the price of $2.58. All other terms of the private placement remain the same. The private placement is subject to final acceptance for filing by the TSX Venture Exchange.