MONTREAL, QUEBEC -- (Marketwire) -- 01/05/10 -- Canadian Royalties Inc. (the "Company", or "Canadian Royalties") (TSX: CZZ)(TSX: CZZ.DB) today announced that Canadian Royalties' shareholders have approved the proposed plan of arrangement (the "Arrangement") with Jien Canada Mining Ltd. ("Jien Canada"). At the special meeting of shareholders held on December 31, 2009, the transaction was approved by 99.70% of the votes cast by shareholders. Under the Arrangement, Jien Canada will acquire the outstanding common shares (the "Shares") of the Company (being the Shares held by holders other than Jien Canada) in exchange for $0.80 per Share, pursuant to Section 192 of the Canada Business Corporations Act. During the week of January 11, 2010, Canadian Royalties intends to apply for a final order approving and giving effect to the Arrangement, and intends thereafter to take the necessary steps to implement this Arrangement and de-list the Shares from the Toronto Stock Exchange.
Further details regarding the terms of the transaction are set out in the Company's management information circular dated December 2, 2009, which was filed by the Company on the SEDAR website at www.sedar.com.
As previously disclosed by the Company, the Company redeemed the outstanding 7% Convertible Senior Unsecured Debentures Due March 31, 2015 (the "Debentures") (being the principal amount of Debentures held by holders other than Jien Canada) on December 29, 2009. The Debentures were subsequently de-listed from the Toronto Stock Exchange.
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.
This news release contains certain forward-looking statements or forward-looking information including statements relating to the Arrangement. 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.
Canadian Royalties Inc.
Chief Executive Officer