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MONTREAL, QUEBEC--(Marketwire - Sept. 16, 2009) - Canadian Royalties Inc. (the "Company", or "Canadian Royalties")(TSX:CZZ) is pleased to announce that RiskMetrics Group, Canada's leading independent proxy firm, has recommended that shareholders vote FOR ratification of the Company's shareholder rights plan (the "Rights Plan"). The Board has called a special meeting of shareholders to be held on September 30, 2009 to ratify its adoption of the Rights Plan.
Canadian Royalties notes that Jien Canada Mining Ltd. ("Jien"), Jilin Jien Nickel Industry Co., Ltd., Jien International Investment Ltd. and Goldbrook Ventures Inc. announced yesterday that Jien has amended its offers to acquire all of the issued and outstanding common shares of the Company and all of the 7% Convertible Senior Unsecured Debentures due March 31, 2015 (the "Jien Offers") to, among other things, extend the expiry of the Jien Offers to 5:00 p.m. (Toronto time) on October 15, 2009. This is in spite of Jien's previous announcement that it had no intention of extending the Jien Offers beyond September 15, 2009.
Glenn Mullan, Chief Executive Officer and Chairman of the Board of Directors, stated, "As expected, and previously announced by Canadian Royalties, our securityholders have sent a resounding message to the hostile bidders by rejecting the inadequate Jien Offers. While the Jien press release indicated that "tremendous support" has been received from our securityholders, it remained silent on the tenders received, and our intelligence tells us that an immaterial amount of shares and debentures were tendered to the Jien Offers. As is customary, we encourage Jien to announce the results of the tender offers, which will show that the Jien Offers are clearly not enough for our securityholders and do not reflect the value of Canadian Royalties."
In Jien's press releases dated August 27, 2009 and September 9, 2009, Jien indicated that all initial PRC approvals had been received to make the offers. However, following Canadian Royalties' observation that no final People's Republic of China ("PRC") approvals have been received, Jien's latest announcement made no reference whatsoever to PRC approvals. Canadian Royalties continues to be concerned about the lack of disclosure concerning these approvals, and once again notes to its securityholders that the National Development and Reform Commission, one of the three Chinese governmental authorities that provides approval for foreign Chinese investment, indicates on its website that a letter of intent or structural agreement signed by both parties is required for approval of a foreign acquisition. Canadian Royalties has not signed any such agreement; the Jien Offers are hostile.
While the Company understands that Jien will be extending the Jien Offers, it is awaiting filing of the notices in relation to the extension. Pending confirmation that the Jien Offers will be properly made as "Permitted Bids" under the Rights Plan, Canadian Royalties has determined to defer the "Separation Time" for rights under the Rights Plan to October 1, 2009, in order to avoid a Separation Time occurring as a result of the announcements in relation to the Jien Offers.
Shareholders should have now received their proxy and information circular for the special meeting in the mail. Every vote is important, regardless of the number of shares you hold. You are urged to vote FOR the shareholder rights plan resolution. If you have any questions regarding the shareholder meeting or require assistance in voting, please contact Laurel Hill at the toll-free number below.---.
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