UPDATE 2-Jaguar Financial opposes Canadian Royalties deal

* Seeks premium for debentures

* CEO says looking at alternatives to block deal

* Jaguar seeks support of a third of debenture holders (Recasts; Adds details, Jaguar CEO comments, share movement)

By Ashutosh Joshi

BANGALORE, Oct 21 (Reuters) - In a new twist to the proposed takeover of Canadian Royalties (CZZ.TO) by China's Jilin Jien Nickel (600432.SS), a group of debenture holders led by merchant bank Jaguar Financial (JFC.TO) opposed the deal, seeking a premium to their investment.

Last week, Jilin and Canada's Goldbrook Ventures (GBK.V) raised their cash offer for Canadian Royalties by about 30 percent, winning approval from the company. Jilin and Goldbrook are offering a total cash consideration of C$192 million, including debt.

Jien Canada, a joint venture formed by Jilin Jien and Goldbrook, is offering to pay 80 Canadian cents for each share of Canadian Royalties, and C$800 for each C$1,000 of principal amount of debenture.

Jaguar, which holds a portion of Canadian Royalties' debentures and has the support of some of the debenture holders, is seeking C$1,010 for each debenture.

The company plans to garner the support of more than one-third of the debenture holders, representing debentures worth C$46 million, Jaguar Financial Chief Executive Vic Alboini said by phone.

Jien Canada plans to get control of at least two-thirds of Canadian Royalties' shares and debentures and has the support of the company board.

However, its plan could face a hurdle if more than a third of debenture holders do not tender their debentures by Oct. 27.

"If we make an offer in excess of 80 Canadian cents a dollar for the debenture holders, to buy 34 percent, then by definition Jien will not be able to get 100 percent of the debts and the condition is that they get at least two-third," the CEO said.

The takeover agreement between Jien Canada and Canadian Royalties could give the companies control of the Nunavik nickel project in northern Quebec.

Nunavik was put on hold last year because of financing difficulties, but is expected to produce about 26 million pounds of nickel and 39 million pounds of copper.

Shares of Canadian Royalties were down 2 Canadian cents at 77 Canadian cents Wednesday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Vinu Pilakkott and Unnikrishnan Nair)