UPDATE 1-Goldbrook, Jilin Jien bid for Canadian Royalties
http://www.reuters.com/article/asiaMergersNews/idUSBNG28582820090807
Fri Aug 7, 2009 10:02am EDT
* Says to offer C$0.60/shr for Canadian Royalties
* Total cash consideration C$148.5 mln incl debt interest
* Offer set to begin from Aug 10 week
* Canadian Royalties shares rise 19 pct in early trade
Aug 7 (Reuters) - Canada's Goldbrook Ventures Inc (GBK.V: Quote, Profile, Research, Stock Buzz) and China's Jilin Jien Nickel Industry Co (600432.SS: Quote, Profile, Research, Stock Buzz) agreed to jointly bid for mineral explorer Canadian Royalties Inc (CZZ.TO: Quote, Profile, Research, Stock Buzz) for 60 Canadian cents in cash.
The bid represents a 25 percent premium to Canadian Royalties stock's closing price on Thursday.
The total cash consideration to be offered is about C$148.5 million, including accrued interest on debentures, Goldbrook said in a statement.
The companies have formed a new company, Jien Mining Canada Ltd, to make the bid, which is expected to formally begin during the week of Aug. 10. The offer will remain open for at least 35 days, it said.
Goldbrook said Canadian Royalties' Nunavik nickel project presents an excellent development opportunity.
Goldbrook, which is engaged in exploration for Nickel-Platinum-Copper group element sulphide deposits, said they also intend to buy all outstanding 7 percent convertible senior unsecured debentures due March 31, 2015 at C$600 per C$1,000 principal amount of debentures, plus accrued and unpaid interests.
Shares of Goldbrook were up 24 percent at 23.5 Canadian cents on the Toronto Venture Exchange, while Canadian Royalties shares were up 19 percent in morning trade Friday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Gopakumar Warrier)
