Canadian Royalties Extends Separation Time Under Shareholder Rights Plan
Montreal, Quebec (Sept. 11, 2009) – Canadian Royalties Inc. (the “Company”, or “Canadian Royalties”)(TSX:CZZ) has been advised that, consistent with its recommendations, the offers made by Jien Canada Mining Ltd., Jilin Jien Nickel Industry Co., Ltd., Jien International Investment Ltd. and Goldbrook Ventures Inc. (the “Jien Offers”) are unlikely to attract meaningful interest from its securityholders. As such, Canadian Royalties has determined to defer the “Separation Time” for rights under its shareholder rights plan (the “Rights Plan”) in connection with the Jien Offers to September 16, 2009, in order to avoid a Separation Time occurring as a result of the announcements in relation to the Jien Offers.The Rights Plan remains in force and effective pending shareholder ratification at the special meeting of the Company on September 30, 2009. The Rights Plan was adopted to ensure the fair treatment of all Canadian Royalties’ securityholders in connection with any take-over bid for the outstanding common shares. The Rights Plan will provide securityholders with adequate time to properly evaluate and assess a take-over bid without facing undue pressure or coercion. The Rights Plan also provides the Board of Directors of the Company (the “Board”) with additional time to consider any take-over bid and, if applicable, to explore alternative transactions in order to maximize shareholder value.
About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties, based in Val-d’Or – Quebec, is a mineral exploration company whose principal active area is along the South Trend located in the Raglan mining district of Northern Quebec’s Nunavik Region. Since 2001, the Company has discovered and delineated several potentially mineable nickel-copper-cobalt-platinum-palladium-gold deposits which collectively form the Nunavik Nickel Project (the “Project”). The Company has completed a Bankable Feasibility Study and has received its Environmental Certificate of Authorization; it has also received mine leases for four sites, namely the Ivakkak, Mequillon, Expo, and Mesamax deposits. An Impact and Benefits Agreement (“IBA”) has been entered into between the Company, three (3) Inuit communities, and Makivik Corporation, the non profit legal representative of the Inuit; the IBA constitutes the Company’s formal commitment to ensure a fair and sustainable distribution of the economic benefits stemming from the Project. Development of the Project was initiated in 2007; the Project was subsequently put on care and maintenance as a result of the 2008 financial crisis. The Company’s objective is to develop and exploit the mineral resources comprising the Project either independently or through a partnership.
This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company’s ability and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2008. Accordingly, all of the forward-looking information contained in this press release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations,. All forward-looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by applicable securities law. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information, please contact
Canadian Royalties Inc.
Glenn J. Mullan, Chairman of the Board
and Chief Executive Officer
1-514-879-1688, ext. 1222
Laurel Hill Advisory Group
North American Toll Free Number: 1-888-298-1523
Outside of North America: 1-416-637-4661
NATIONAL Public Relations Inc.