TORONTO (miningweekly.com) – Jien Canada, the company formed by China's Jilin Jien Nickel Industry Co and Canadian junior Goldbrook Ventures, has satisfied all of the conditions of its offer for Canadian Royalties and extended the offer for an extra ten days, it said on Wednesday.

Jien Canada now owns about 76,66% of the outstanding shares and 70,81% of the outstanding debentures of Canadian Royalties, fulfilling the offer condition of two-thirds of both shares and debentures.

The company has also received approval for the transaction from the National Development and Reform Commission of China, and all the other conditions have been either satisfied or waived, it said.

The offer will now expire on November 24, to allow further shares and debentures to be tendered.

Canadian Royalties agreed last month to support an increased offer from Jien Canada, in which Jilin Jien holds 75% and Goldbrook owns the balance, after rejecting an earlier buyout proposal as too low.

In the final offer, Jien Canada said it would pay C$0,80 in cash for each Canadian Royalties share and $800 for each $1 000 principal amount of the company's outstanding convertible senior unsecured debentures, plus accrued and unpaid interest up to the date the debentures are taken up.

The initial offer, announced in August, was for C$0,60 a share and C$600 for each C$1 000 principal amount of debentures.

But the increased offer still faced opposition from some debenture holders, led by merchant bank Jaguar Financial, which tried to block the acquisition, demanding that debenture holders be paid at least $1 010 per $1 000 principal amount of debentures.

However, Canadian Royalties said that it had solicited other offers and the Jien transaction still represented the best available option.

Canadian Royalties' flagship asset is the Nunavik nickel project, but the company said last year it would curtail development activity and eventually put it on care-and-maintenance after difficulties securing funds for the project and amid deteriorating metals prices.

Once in production, the Nunavik mine's yearly output is expected to be about 26-million pounds of nickel, 40-million pounds of copper, one-million pounds of cobalt, 14 500 oz of platinum and 80 000 oz of palladium, based on a June 2007 feasibility study.

Shares in Canadian Royalties rose 6,7% on Wednesday morning, to C$0,80 apiece by 10:03 in Toronto.

Goldbrook gained 13,8% on the TSX Venture Exchange, to C$0,33 a share.

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