Canadian Royalties Reaffirms Expectation That Jien’s Offer Will Be Unsuccessful
MONTREAL, QUEBEC – Sept. 14, 2009 – Canadian Royalties Inc. (the “Company”, or “Canadian Royalties”)(TSX:CZZ) reaffirms today that, consistent with its recommendations, the offers made by Jien Canada Mining Ltd. (“Jien”), Jilin Jien Nickel Industry Co., Ltd., Jien International Investment Ltd. and Goldbrook Ventures Inc. (the “Jien Offers”) appear at this time to be unlikely to attract meaningful interest from its securityholders. The Jien Offers are set to expire tomorrow, September 15, 2009, at 5:00 p.m. Toronto time, unless extended or withdrawn.Canadian Royalties further notes that despite the Jien Offers being set to expire tomorrow, there has been no announcement by Jien regarding receipt of the necessary approvals from the People’s Republic of China (“PRC”). Receipt of these approvals is a condition of the Jien Offers and any transaction involving a Chinese party cannot be completed without these approvals in hand. In addition, Jien stated in its press release dated August 27, 2009 that it had no intention of extending the Jien Offers beyond September 15, 2009, despite the fact that the PRC approval conditions of those offers have yet to be met.
The Company confirms that to date it has not received an amended proposal from Jien and that the Board of Directors continues to aggressively pursue alternative value-maximizing initiatives to enhance securityholder value.
Glenn Mullan, Chief Executive Officer and Chairman of the Board of Directors, stated, “We thank our shareholders and debentureholders for continuing to support the company over the last few weeks. In all of our discussions with stakeholders, there has been a consistent understanding of the value inherent in Canadian Royalties and the Nunavik Nickel Project and rejection of the Jien Offers acts as overwhelming evidence supporting this understanding.”
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
Glenn J. Mullan
Chairman of the Board, and Chief Executive Officer
1-514-879-1688, ext. 1222
Shareholders / Debentureholders:
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./
Cabinet de relations publiques NATIONAL inc.