TAKEOVER: Canadian Royalties rejects Jien-Goldbrook offer

MONTREAL — The directors of Canadian Royalties have unanimously recommended that investors reject the unsolicited offer from Jien Canada Mining, owned by Vancouver's Goldbrook Ventures and its Chinese partner Jilin Jien Nickel.

Glenn Mullan, CEO and chairman of Canadian Royalties, stated, "After careful review, the board has concluded that the Jien offers substantially undervalue Canadian Royalties and fail to recognize the strategic value of the Nunavik nickel project. In addition, the timing of the Jien offers is incredibly opportunistic and the Jien offers come at a time when Canadian Royalties is trading at a significant discount to its peer group."

The Canadian Royalties board is pursuing alternatives.

The board's recommendation is contained in a directors' circular that will be filed with Canadian securities regulators on SEDAR at www.sedar.com.