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Gold/Mining/Energy : Mining News of Note

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To: LoneClone who wrote (42042)	8/25/2009 5:55:16 PM
From: LoneClone	Read Replies (1) of 194002

UPDATE 2-Canadian Royalties rejects Jien Mining's takeover offer Tue Aug 25, 2009 1:09pm EDT reuters.com * Says offer substantially undervalues Canadian Royalties * Says offer fails to recognize value of Nunavik project (Recasts, adds conference call details) Aug 25 (Reuters) - Canadian Royalties Inc (CZZ.TO) on Tuesday rejected the unsolicited takeover offer from a joint venture led by China's second-largest nickel miner Jilin Jien Nickel Industry Co (600432.SS), saying the offer did not recognize the strategic value of its Nunavik nickel project. Earlier this month, Canada's Goldbrook Ventures Inc (GBK.V) and Jilin Jien Nickel formed Jien Mining Canada Ltd, to jointly bid for Canadian Royalties. The companies offered to buy shares of Canadian Royalties at 60 Canadian cents a share for a total cash consideration of about C$148.5 million. [ID:nBNG285828] Canadian Royalties recommended shareholders and debenture holders to reject the unsolicited offers. "We typically feel this is a low-ball bid and they can put a lot on table," the company said on a conference call. Canadian Royalties also said that the offer was highly conditional and Jien had not provided any information about a clause related with approval of the deal from the Chinese government. Takeover of Canadian Royalties could significantly increase Jilin Jien's nickel production, as it would add Canadian Royalties' Nunavik project to its fold. The Northern Quebec-based project is expected to produce about 26 million pounds of nickel once in operation. "The timing of the Jien offers is incredibly opportunistic and the Jien offers come at a time when Canadian Royalties is trading at a significant discount to its peer group," the company said in a statement. Shares of Canadian Royalties were trading flat at 58 Canadian cents Tuesday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Unnikrishnan Nair and Maju Samuel)

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