China eyes Canadian Royalties for $148.5 million

Jien Canada Mining Ltd., a company jointly owned by the leading Chinese Nickel producer Jilin Jien Nickel Industry Co., Ltd., and Canada's Goldbrook Ventures Inc. has submitted an unsolicited offer with Canadian securities authorities to acquire nickel explorer Canadian Royalties for around $148.5 million, in a continuing acquisition spree by Chinese companies, of the world's natural resources during the global economic meltdown.

The offer includes acquisition of 100 per cent shares of Canadian Royalties for a cash consideration of C$0.60 per share and also 100 per cent of the company's outstanding convertible senior unsecured debentures for cash consideration of C$600 per C$1,000 principal amount, a joint press releases by Canadian Royalties and Goldbrook said yesterday.

Goldbrook said that the share offer price represents about 28 per cent premium to the 20-day volume weighted average price ending 6 August 2009, and the debenture offer price correspond to approximately 122 per cent premium.

The closing prices of the shares were C$0.48 and debentures were C$305 per $1000 principal amount on 6 August.

The Jien offer will remain open until 15 September 2009.

Montreal, Quebec-based Canadian Royalties is a mineral exploration company whose primary area is located in Raglan mining district of North Quebec's Nunavik Region. Since 2001, the company has discovered and delineated several potentially mineable deposits of Nickel-Copper-Platinum Group minerals, which are collectively named Nunavik nickel project.