Nunavik Nickel Project
Development of an nickel-copper mine - production, 2010
Message: Transfer of 80% Interest in the Expo-Ungava Property and Arrears Cash Call
| May 12, 2009 |
| Canadian Royalties' Joint Venture Update: Transfer of 80% Interest in the Expo-Ungava Property and Arrears Cash Call |
| MONTREAL, QUEBEC--(Marketwire - May 12, 2009) - Canadian Royalties Inc. (TSX:CZZ) announces that it has made application to the Ministere des Ressources naturelles et Faune ("MRNF") to effect the transfer of an additional 10% interest in the Expo-Ungava property from Ungava Minerals Exploration Inc. to Canadian Royalties. As announced on April 2nd, 2009, Arbitrator Maitre Claude-Armand Sheppard, in his Award dated April 1, 2009, declared that the Award shall constitute valid title upon which the MRNF may register an additional 10% interest in favour of Canadian Royalties, in the event that Ungava Minerals failed to transfer the interest co-operatively prior to April 15th, 2009. Ungava Minerals failed to do so, and as such, Canadian Royalties applied directly to the MRNF for the transfer. Since the filing of the transfer documentation with the MRNF, Canadian Royalties has been advised that Ungava Minerals and its parent company, Nearctic Nickel Mines Inc., have attempted to prevent the registration from being effected. The Company shall report on the status of the transfer, once known. The Company further confirms that the Arbitration Award declared that the joint venture among Canadian Royalties and Ungava Minerals commenced as at September, 2007. During 2008, Canadian Royalties provided Ungava Minerals with initial cash call notices for joint venture expenses totalling $43,177,950; none of which were paid or advanced by Ungava. Given the clarity provided by the Arbitration Award, Canadian Royalties has requested in writing that partial payment of the initial cash called amounts be paid, totalling $32,383,463 (being 75%), and same was due on or before the end of business on May 6th, 2009. Canadian Royalties provided Ungava Minerals with the opportunity to audit the joint venture expenses actually incurred, so as to allow for transparency and adjustments, if warranted, and to ensure payment of remaining outstanding amounts by Ungava Minerals prior to May 31st, 2009. Ungava Minerals has failed to bring the joint venture account into good standing. |
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