Canadian Royalties Signs Impact and Benefits Agreement for its Nunavik Nickel Project
MONTREAL, QUEBEC–(April 9, 2008) – Canadian Royalties Inc. (the “Company”) (TSX:CZZ) is pleased to announce that it has entered into an Impact and Benefits Agreement (the “IBA”) with the Nunaturlik Landholding Corporation of Kangiqsujuaq (“Kangiqsujuaq”), the Qarqalik Landholding Corporation of Salluit (“Salluit”), the Northern Village of Puvirnituq (“Puvirnituq”) (Kangiqsujuaq, Puvirnituq, and Salluit are hereinafter referred to collectively as the “Communities”), and Makivik Corporation (“Makivik”), the non-profit legal representative of the Inuit in respect of its Nunavik Nickel Project (the “Project”) located in Nunavik, Quebec. Makivik, whose board of directors includes representatives from the 15 communities of Nunavik unanimously approved the entering into of the IBA.The IBA will be in effect for the length of the Project’s mine life, constitutes a formal commitment by the Company to ensure the fair distribution of the economic benefits arising from the Project. Furthermore, in addition, to providing for equitable Inuit participation in the Project through assurances for hiring locally by implementing educational training programs and contracting in preference to regional Inuit supplier services, this IBA includes guaranteed payments and revenue sharing allocations to Makivik and the Communities over the expected life of the mine at the Project.
It is anticipated that this IBA will deliver economic and social benefits to the Inuit of Nunavik through Makivik, aid in the mitigation of the Project’s impacts, and provide an efficient and ongoing relationship between the parties during both the development and operation phases of the Project.
Richard Faucher, President and CEO of Canadian Royalties stated that “with approximately 30% of the Project’s direct capital costs committed or incurred to date, all within budget, the successful conclusion of this IBA represents a key milestone for the Company in obtaining the environmental certificate of authorization and keeping the Project on schedule. The Company is extremely pleased to enter into this agreement with the Communities and Makivik, its conclusion representing the culmination of a long period of cooperation and negotiation to bring the Nunavik Nickel Project closer to development, while laying the groundwork for the establishment of a strong relationship of trust and confidence between the parties and the Inuit communities of Nunavik, in conjunction with providing positive commitments to same. In this regard, we are proud to be a contributor to the region’s various projects.”
About Makivik Corporation
Makivik is the development corporation mandated to manage the heritage funds of the Inuit of Nunavik provided for in the James Bay and Northern Quebec Agreement (JBNQA). Makivik’s role includes the administering and investment of these funds, and in promoting economic growth through the assistance of the creation of businesses run by Inuit in Nunavik.
Makivik promotes the preservation of Inuit culture and language, as well as the health, welfare, relief of poverty, and education of Inuit in the communities.
About the Communities
The community of Puvirnituq is located to the West of the Project. It is located 4 km from Povungnituk Bay, on the north shore of the major river by the same name; this Inuit village is surrounded by an expansive plateau. It is a mixture of countless lakes and rivers, rich wildlife and precious arctic plants and flowers.
The community of Salluit is located to the North of the Project. It stands at the far end of the narrow Sugluk Inlet, 10 km inland from the Hudson Strait, hidden between high, rugged mountains rising close to 500 m. Salluit being the middle point between Nunavik’s 15 communities, it is a strategic location for meetings attended by people of the Hudson and Ungava coasts.
The community of Kangiqsujuaq is located to the East of the Project. It occupies an exceptional site, 10 km from the Hudson Strait, on the south-eastern shore. The village is snuggled in the hollow of a splendid valley surrounded by majestic mountains, a landscape of unspeakable beauty.
About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.
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 to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2007 and dated March 31, 2008. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Project is a technical viable and economic operation, that it can be successfully completed by the Company, that the Company will receive the required permits and access to surface rights, and that the Company can access financing, appropriate equipment, and sufficient labor. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
For additional information please visit our website at www.canadianroyalties.com.
For more information, please contact
Canadian Royalties Inc.
Richard R. Faucher
President & CEO
Toll free: 877-879-1688
Canadian Royalties Inc.
C. Jens Zinke
Vice President Business Development and Investor Relations
Toll free: 877-879-1688
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